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Federal Reserve Bank of St. Louis

Committee on tlrancn uroup & ~ ain
Banking ( ar 2 - ar 19 1930)
Branch Banks

421.11

END

KIND OF MATERIAL OR NUMBER

NAME

OR SUBJECT

421.11

Committee on Branch Group & Cha.in Banking

DATES (Inclusive)

Mar 2 -

PART NUMBER

2


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Federal Reserve Bank of St. Louis

SHEET

ar 19 1930

II

lAarcl: 18, 1930

St.
TO:

Federa l Roscrv e 3oard

SUEJ::::CT:

6526

zre.nch , c:;.1ain and
Group :Banki- 6

FRO;.::

'Jo have no,·: comple ted the ta'oulc> tion of the data receive d
er
from the Federa l reserve ag0nts on tne above subjec t as of Decemb
chain
,
branch
of
summary
a
th
heret:i
31, 1929, and there is presen ted
and grou:;;i bankin g as of that date·. Detaile d s ta tis tics appear in
accomp anying tables, and our records on branch , ch9in anQ 6 roup
banl-:in g give furthe r data with respec t to individ ual banks and individu al branch es .
Exp-8ri onco ¼~tb our branch bankin g record durin 6 tho ,ast
throe years loads us to believe that it is substa ntially comple te
and accura te, oven as to nonmember b~lli<s , In the case of the chain
and group bankin g statist icG, tho i_.)rcsont compil ation is probab ly
the most comJlo to that has fou::; far becor:10 availab le, but due to
tho difficu lty of obtain ing infor,.1 ation on this subj,)c t it is quite
likel;,,· that it docs not include a few si:iall chains for which no informat ion is availab le, and it may not i~clude all the oanks in
so~e of the groups or chains . It is also possib le thtt the manage
that
r:iont or contro lling intere sts do not r0bard so1ne of the ban1~s
.
are include d in our figure s as consti tuting grou2 or chain systJms
On the whole, howGvc r, foe infor:na tio!1 as submi ttcd on chain and
group banking is believe d to bo subs t-..ntia lly correc t.
Tho materi al is presen ted under three genera l heads . The
first part relates to branch , chain and _;ro.x_:, bankin g ta.ken as a
whole, the second to chain and 6 rou] banl:in b alone, and tno third
to branch banking .
o accoun t is ta.ken in this .nc1.1orandw.J of iforris Plan .,anks
or small loan agenci es which operate in a n-w.1ber of state.,,


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Federal Reserve Bank of St. Louis

!'.arch 16,

1930.

St. 6526
M-S;::OR...:Ji!DJM on BEA~:CF, c:~rr A:.1ID GROtJP BAKIIN'.}
PRF.PAR,"J) FOT-l :1ITT IN1c0tr.:AT int1 OF TE:a; FEDE.ct.AL RE3EFVE BOARD.

The te.bulation of tb '" d"ta received frjrn the Federal reserve
agents on the above subject a.s of Decerr:ber 31, 1929, has been comnleted
and there is p~esenteJ. }iere.ri til a FU:L:1ary thereof as of that datA.
Exnerience with our hranch tanl<: int-.: rE,cord during the past
three years leads us to believe thrt it is substantiallJ ccm-::,lete and
accurate, even os to nonmember ba·1ks. Tn the case of tr.e chein c:1,r d
group lanking statistics, the ".)resent corrtr)ilat ion is probaoly the
most cop--.~ ete that has thus far become available, but due to tbe
dFfi:;u.lty of obtaining infun1ation on tl~is subject H is quite likely th:1t Lt J.oes not include a few smal 1 cha.ins for- -wJ-:ic> no information is c:1vaiJable, and it ,nay not inc:lude all the b9 r,ks in some .;f
the grouos or chains. It is also possible th'3.t the ue·1cJ.gernent or
controlling interests do not rcga~u some of the banks that are includ.ed in our figures as constitutin~ ~roup or chain systc .s. On t~e whcle,
however, the inf'oy,;uation as sub11itte1.1 on chain and groun oanking is
believed to be substantially correct.
The ne.terial is oresented under t::.ree general heads. The
first part relates to branch, chain ar,d group oanking taken as a
whole, the seco:::id to chain Lnd group banking alone, ar.J the third
to branch banking.
No account is talcen in tLi r; ,:emo r,:tndum of l·.: orri s Plan ban;r.s
or small loa.n agencies wtich o,:erate in a number of states.


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Federal Reserve Bank of St. Louis

>

General _Surn..l'l.I~ . Accordi _g to staListics just co~1iled, faere
were in operatj_rrn b the unite,i States at t11e end of 1923 , 24 , 645*
-oanks and 3, 5~7 1,,~;.i.nches, or a total of 28 , 192 banking offices . Of
tLis total of a:pprvximDtely 28,200 bar,king offices , tr.ere ,'lere 6 , 353
banks and branches that belonged to oranch b2.nli:: s:rst1ms, to c:1ain or
group bank syster.as , or to both . T..is le· ves 21 , 839 banking institutions
that might be definitely termed as 11 inde.~j0nd.ent unit banks" -- havinc
no bra::iches and being in no wa:r connect0d wi t:i other banl•:s thro11t,;h chaL1
or group affiliation .
As a measure of the banking resources of the barH:s fallin 6 into
the different categories , we have te'uul..,ted th<3 fie;U1·0s of total loat1s
and investments . On this basis it a:)-~)eo.rs that at the e'!'ld of 1929 all
ban}:s in the country !1ad total loans and L1Vestments of approxim-:i_tel:'
$58 , 500 , 0uO,OOO* . On tha samG date the 'uranch , chain a d .::;rou.9 'uariJ:ing
systems, err.bracin 5 a total of 6 , 353 banks "lnu. branches , had total loans
and investments of a:;>~1roximately $30 , 000 , 000 , 000 . In other words , the
banking resources of the branc:h , group and chair systems were more than
one-half the total of all b:~.nks in foe cou."ltr:r .
The branch ban:.-:ing systems at the end of 1929 , taken alone ,
embraced 822 banks and 3,547 branches with aggregate loans and investmen ts of . 25 , 100 , OOC ,000, but these figures include 119 banks with 1 , 415
branches and loans and LNe3tm:rnts of $6 , 300 , 000 , 0CO tl1at were also report0d as belon 6 in. 6 to bank grou:_:>s or C1 ,.,i 1s . Thern ·,ere 287 chein or
group bank systems report0d in existence at the end of
embracing
2 , 103 banks rri th loans and. ir_vost,.10nts of $11,200,000 , / ~8S1,; fi 6 uros,
like those givon for tl G br:1.rch syste, s, inclu-le a. certain amount of
du:plication, thet is to say, they inch~.dG 119 barL.b:s with 1,415 brnnches
and loans and investm.... nts of $S,3oc,ooo,oco , ",hich ,,,ere ro}_)ortod as
cclonging to chain or grow? s?ste1,1s . This du9licntion is, l o,·,cvor,
eliminatod fror.1 the combin<3d statistics ,__iv on in th0 two .._:,r0coding
:?aT a graphs .

d~~9,

Tho tablo on th" follo rir!J ::_:>Rgo s.10'"'S th0 numJ..ir ant.: loans c::.nd
investments of branch, chain and gro1.1::, 'i:).,n,nn 6 sJst.::ms 1,t the one.. of
1929 , in co~Jarison with figures for ell banks in t 10 c"unt •~r .

*Excluding :9rivat"' ban!-:s not ";1I1d.::r state su:9.:3rvision . For two
stat0s tho DocorJbcr fibur0s for state ban1-:s aro rjot availabl.,; ,
and in th~so ca sos the latos t avai lo.bl0 abstract W"'.S us.3 l.


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Federal Reserve Bank of St. Louis

2

-

NUMBER .AND LO.ANS .AlJD HTV:SST:.i.ENTS OF ALL B~'--1"\JKS DJ THE UNIT3D ST.Ams
.AND OF BRANCH, CHAIN .A:rn GROUP :aA~\K SYSTE.:t:S AT TI-IE END OF 1929

Number of
banks ( or
branches)

..

.

1,984

4,913,000,0 00

119

•6,264,000,0 00

3,547

.

Banks that belong to chains or grouys and
operate branches:
.
Head offices (parent banks)

28,192

( a)
(a)
$58,461,000 ,000

24,645

All banks (head offices) in United States**·
. .•.....
Branches . .
Total -- all banking offices.
Banks that belong to chains or groups but
. • • • • •
operate no branches .

..

Iran.che s . . . . . . . . . . • .

Barr.1:: s that do not belong to er.a ins or groups
but operate branches:
Head offices (parent ban...'l{s)
:Branches .•
Independent u..~it banks (banks that do not
belong to chains or groups and do not operate
branches) . • . • • • . . . . • . • .

Loans
and
investments

1,415

( a)

703
2,132

*18,839,000 ,ooo

21,839

28,445,000, 000

(a)

*Includes branches, separate figures not being available.
**Exclusive of urivate banks not under state supervision . For two states
the December·· figures were not available for state banks, and the
latest available figures were therefore used.
(a) Separate figures not available.
Branch, Chain and Group Bankir.g Areas. T:,J::en gene rally and looking at
the situation from the standpoint of the nmnber of banks involved, chain
and group banking exists on the widest scale in those states in which branch
banking is prohibited entirely, for example, in !·. 1innesota, North Dakota,
Kansas, Iowa, Illinois, Oklahoma and Texas. It has, however, grown to considerable pro:portions in so-called restricted branch banking states -where branches may be established only in the head office city, notably
Michigan and New York. From the standpoint of banking resources controlled
by the members of the groups and chains, chain and group banking is also
found on an extensive scale in certain additional states, including pa.rticularly California, Florida, Georgia and lJontana.
~sis gen~rally known, chain and group banking has had i~most rapid
development in recent months in the northwester n states, but considerabl e
activity has been reported in so,ne of the eastern and southern states.
There are relativel:r few states where it does not exist to a substantial
extent, but the predominant chain or group banking area rJaY be said

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Federal Reserve Bank of St. Louis

3
to comprise the middle western, western and central states. There seem
to be at present very few legal restrictions on the formation of bank
groups or chains, and the continued growth of this system, which might be
termed indirect branch banking, is thus possible generally throuJ10ut the
country.
The growth of branch bankin 6 , on the other hand, has been restricted
by law in many states, and the brancn bankin 6 area has not c:i.1an 6 ed materially in recent.years. State-wide branch banking has, of course, had its
greatest development in California, but it has also developed to a considerable extent in Maryland, North Carolina, Rhode Island, South Carolina
and Virginia. The other states embraced in the principal branch banking
areas are those in which the establishment of branches is restricted as to
location, including New York, Michigan, Ohio, Pennsylvania, Louisiana,
New Jersey and Massachusetts. The branch banking area is, therefore, much
less extensive than that in which chains or groups operate. It includes
most of the eastern states, and Michigan, Louisiana and California, but
very little of the central and middle western sections of the country.
1iember Banks of Federal Reserve Sys tern. The branch, chain and group
banking systems, which in the aggregate had approximately $30,000,000,000
of loans and investments at the end of 1929, included 923 national banks
with loans and investments of $11,800,000,000 and 278 state bank members
of the Feceral Reserve System with loans and investments of $10,800,000,000,
or a total cf 1,201 member banks with aggregate loans and investments of
$22,700,000,000. These banks therefore controlled approximately 63 per
cent of the banking resources (as measured by loans and investments) of
all member banks of the Federal Reserve System.
In some states the member ~Janks that operate branch systems or
belong to chains or groups control the greater part of the banking resources of all of the member banks in the state, as is brought out in
table No. 4 submitted herewith. It will be noted from this table that in
the following states the loans and investments of member banks that operate
branch systems or belong to chains or groups constitute more than one-half
of the loans and investments of all member banks in the state:

California
DeJaware
Dietrict of Columbia
Florida
Georgia
Kentucky
Louisiana


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Federal Reserve Bank of St. Louis

Iiiaryland
Massachusetts
I:hchigan
iiiinnesota
iiontana
New Jersey
New York

North Dakota
Ohio
Rhode Island
South Dakota
Tennessee
Washington

.

- 4
Ta"'Jles. For reference _::,ur -• oses, t .. e follo•r.i.n..; tg0les rel::- tin,;
to branc,1, chain an C:. rou:•? ~Jan:::in__, are a tt3,checl:
':i.aole 1 - Number and lo 3n s and. investnents of all banks and
branches in the Uni teG. States .2nd of 0rancl1, chain
and 6 rou:p b ,.,_U:;:in 6 s~rste1s, Dece.aber 31, 1929, El_
clesses of oa~:s.
2 - lTum'uer of 'uan: s ::nc' 0 rai1ches and nu..nber of branch,
c~12_in and ..;rou•) 'u ankin._:. s~rsteins, o;;r states,
De ce,-1-..,,er 31, 1923.
3 - Lo2ns and invest..1ents of a.11 ba.n~cs and of branch,
chein and. "" rou.._J O"nk in 2, syste_.1s, b:,, states,
Dece~ ~er 31, 1329.

4 - Number a.nd loans "nc.: invest..ients of all member

banks in e ncl1 sk te c'Il("i. of u1e•.10er b2nk:s t11at
o·Jerate "branche s or '.Jelou~ to ~ro u:J s or cha.in s,
Decei:1ber 31, 1929 .

i.:ore c1.etailed infer.nat io n on chcin anC:. ~, rou__) b,nkin., anC. on
brancl1 b2n!: in 6 is g iven in the se , r ,te sections rel o tin-:, to these
subjects.


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Federal Reserve Bank of St. Louis

5

Definiti on . When the Federal reserve a.gents were request elII to furnish the :Board :-,i th reports on chain and erotL:_1? banking , t:he term chain
a!ld group banking" ,vas defined as co~?risi ng those syste1r.s "in wnich any
person, group of persons , ~artners hip, associa tion or corpora tion has
ac~ual or potenti al control over t~e operatio ns or policies of three or
nore ba:1king uni ts, each v,orl::in 6 on its Jwn ca.._)i tal .'.1.Ild under its O\'ID
personn el . " It is on this basis foat the statisti cs submitte d herewith
have been prepared . It should be realized , of course, that under an:'Jr definition of the term, mar.y difficu lties ~resent themselv es in endeavo ring
to make a coffipreh ensive survey of the subject , particu l~rly where nonmember banks are in-:ol ved. The sourc e s of the informa tion obtained -oy
the Federal reserve agents include examinc: ltion reports of member Jank:s,
nationa l bank examine rs, state ucnKin 6 departm ents, the manpgom ent or controlling .i.nt,3res t of some of the _;rOU-2)S , a-YJd in some instance s press
reports or similar informa tion.
No attempt has been made in the preseYJt tabulati on to distingu ish
between "chain ban1:::ing" and "group banki nl," but it is of interest in
this connect ion to note that t:1e Comptro ller of the Currenc: r, in a statement made before the House :Bankin 6 and Currer.cy Committ ee on February 25 ,
made a distinct ion between the two terms as follo,.,s :


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T'ne term I chain banking I has been in use for many years in
this country to describe a conditio n in which a nunber of banks
were o,med or control led by the same individu al or by a group
of individu als . These so - called chains were situated vecy
largely in the rural distric ts and the m0mber banks of the chain
were princip ally small country banl.s. This coaditio n was and
still is quite ,revale nt in the agricul tural regions of the West
and South . Uany of these chains have co,.1e to disacter through
the failure of all of the banks \'/hich constitu ted them. During
the many years this type of bank o •me rship has been in exi s tcnce
it was not conside red as a trend toward a fundame ntal change in
our banking system nor did it rcla te itself to the question of
bra~ch banking . On account of the failures of several of these
chains the term 1chain banking ' began to car y ~ith it an
element of disfavo r .
"The term 1group oanking I is of very recent origin and is
bcin6 used to describe what appears to be a major movemen t in
our banking system. The ~rincip al factor in group banking is
that each group is centered around a city or metropo litan bank
through means of a holding company which ovms the majority of
the stock of each b~nk thereby creatin 5 a syst8m of ban~s more
or less integrat ed in managem ent with the central bank of the
group . Its one common factor with the older t;,rpe of chain banking is th3. t several count~, 'uan,,.s m-...,y be o·Nneci. by a single
agency . In this discussi on, therefor e, I shall use the term
1
group banking 1 to mean the ovmcrsh ip und sor.10 elcrr:ent of operatin g
control of several banks throu6h thG :;1cdium of a bank holding
company ."
11

St,6526

- 6Summery for the United States. As has o.lr,;e.dy b,,.,n not Pd, som"' of
th~ b2nks th/-"t belong to chains or groups Fllso 01xffat<J brench-"s, in fe,ct
the two l=•rgPst brPnch syst"'!ms -- th".1 'Br'nk of Itnly :National Trust &
Savi!lgs Associ::tion, San Frr.ncisco, l'nd thP Be.nk of .AJn,'"'rica of C1:1.lifornia,
Los Ang"l"s, with c total of 447 branchns, c.re includE"d in thr, Tr2nsamnico Corporntion gr oup of New York. If r-,lJ. ch2in ond group banks
o.rP includ"'d, r.h-" th"'r or not they 09er,1t8 br3.nch<>s, th., stetistics show
thri.t D.t the end of 1929 th~r"' w9r<> 2o 7 bank chnins Pnd grouos in the
Unit ;;d Stc.t :'S "mbrn.cing 2,103 ban}:s, as compnr~d Titµ 275 chains and
groups P-mbro.cing 1,821 b.s.nks at th"l "'nd of June. Thi:" 2,103 ben..1.{s rPpcrt ~d us bAlonging to ban{ chains or groups at tt~ 0nd of last yPar
constituted about onr>-twelfth of th,., brnks inooBE' COUJ1try 1 'l"hilo thrir
loans and inv~stm"nts wr'r"! about $11,200, 000,/or nearly one-fifth of the
aggregate l oans and inv0s tm1:mts of nll ban2.rn in the United Stat0s.
Sumrrary by Classes of Banks. Nationnl bor.. 1rn rn.p"rtr:d as mewb rs
of bnnking cho..ins a.nd grouos nwnbered 802 at the end of December as compared with 645 in June, state bank members 136 compared with 111 in June,
and nonmember banks l,lb5 compared with 1,005 in June. Loans and investments of the national ba~{S belonging to the ban..1{:ing chains and grouus
wer~ apuroximately ~5,900,000,000 or over one-fourth of the total for
all national ban~s, while loans and investments of state bank members
belonging to the g roups agg re gated $3,400,000,000, and of n~nmember ban:-cs
$1,900,000,000,
0

The followin g table g ives a summary compc:rison for th e country e.s a
whole, by clr1sses of banks, for June and December 1929:

lJUY!lb,::,r of b1?n1cs
Lo~ms and investmPnts
Members
Of members
Total of grouus Of all
of groups
and chaim banks
and chc'ins **
(In millions of dollars)
All classAS of bE'n:-cs
December*
June
National ba.nks
December
June
State bank members
December
June
Nonmember ban1;{S
December
June
t:t.n.':B<m OF GROUPS ~'D
December
June

24,645
25,110

2,103
1,821

58,461
58,474

11,177
8,300

7,403
7,530

802
b45

21,5c4
21,457

5 ,908
4,159

1,119
l, 177

136
111

14,350
14,254

3,397
2,509

16,123
16,403

l,lb5
l,Ob5

22,527
22,763

1,872
1,632

c-:AHTS :
237
275

*For 2 states the Decem'.)e r figures for state han~-cs are net s.vai lAble
and the lat,,,st available abstracts w"'rP us<>d in these cas<>s.
**Eased largely on condition firures publis~ed in J uly 1929,

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Federal Reserve Bank of St. Louis

(St. 6520

7
Principal C:1ain c:..nd Grou,, 3~kirg Statos. Chain nnd 6 roup be~king
has reacn2d its greatest dove;lop,no:r.i. in th0 north,1estorn stat.Js, but it
embraces a consider&blo ::nun1:Jor of be:,ks an:i a relatively largo :proportion
of thG banking resources in ma:w oth:.H states. There wera, as a matter
of fact, 25 sbtos at the end of 1929 in v,.i1ich CDain and. grou:9 banks consti tutod a subs tan ti:ll pn.rt of tho nur.1bor of bMks or of tho banking
resources, as indicetod in tho following table:

State

Nu:uber of bc:.uks
Mcmbors of
Total
groups and.
chains

Minn0sota
Michigc..n
North Dal::otn
Now York
Kansas

1,046
743
412
1,127
1,069

Iowa
Illinois
Oklahoma
Texas
Washington

303
135

and. ir_vostmcnts
Of :nemoors of
Of all
grorip s a:1d
banks
chains*
(In ;oi.11 ionR of doll::-rs)
LO-':IlS

gg

901
2,021
112
17,222
4o4

584
1,262
58
2,011
46

1,257
1,765
617
1,300
340

37
34
85
s4
75

732
3,802
401
1,036
460

90
1,212
103
104
189

so4
387
568
960
415

73
61
60
53
72

359
137
2,338
917
193

62
47
396
212
50

California
Massachusetts
Montana
PennsylvW1i11
Florida

437
450
195
1,560
235

49
45
45
48
4o

3,420
4,225
144
5,703

1,528
871
81
803
134

Idnho
Oregon
Missouri
Utah
Georgia

137
234
1,277
104
405

41
36
36
26
22

31
260
1,199
162
334

37
32
158
50
166

All other states

6,787

229
2,103

11,535
**50,461

841
11, 177
192').

Nebraska
South Dakota
New Jorsoy
Wisconsin
.Arkcnsas

Total

114

102

258

I

"'Based largely on condition fi;uros pui:llish3d in July
**For 2 states tho Doccmbor fi_;·u:res for s t..,to benks e.ro not ~rot
available and the latest avo,ilc•blc a.ostracts 1vcrc used in those ceses.


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Federal Reserve Bank of St. Louis

... g

..

Recent Devel·um rnt'3. '.Ihe first sm·veJ of chain banking made by the
Federal reserve agents for the Federal .Reserve Board was in Decemce r 1922,
the second in June 1926, the third in June 1928, and the lr1st complete
survey in June 1929. Since t~at time monthly sup::_;lements on changes in
chain and group banking have been submitte d to the :Board by t~1e Federal
reserve agents. 2.1he data submitt'3 d prior to June 1929, however , are not
sufficie ntlv comvl8te to malce it possible to compare the present situatio n
with that which ;xisted in earlier years, in fact even the fifs'U,res as repcrt-ed six months ago have since had to be revised conside rably. It is
dm ing the last six ~onths, howeve1·, that group banking has been ex-.J?anding so rapidly.
Increase s in the number of banl:s belongin g to chains and groups
since June are confin0d largely to 9 states, a...11d most of tho gro~,th is
tho result of the ra,id expansio n of a relativr .ly small nu;Jber of groups,
notably the Northwe st Bancorp oration of }fJ.nneap olis ,,hich increase d from
20 banks in June to 92 in Decembe r, the First Bank Stock Corpora tion of
Minneap olis froi:1 12 to 78, and tho Guardia n Detroit- Union Group a Detroit
which was not in existenc e in Jun0 but corr._Qrised 35 banks in Decerilbe r.
Tho number of chain and group ben.ks at the end of June and Decembe r in
each of the 9 states in which tLJ princip al increc.se s occurred was as
follows :
Number of grou,-p or
chain banJ,:s
Increc>,se
Juno to D1cerr.ber D,"ce:.'.!ber
June
Minneso ta
Michigan
North Dakota
New York
Washing ton
Arkansa s
Montana
Massach usetts
Kentucky
Total

47
49
14
21
16
•17
13
12
12
201

308
135
n4
102

75
72
45
45
16
912

261

86

100
81
59
55
32
32
711

1
*Some of this increase ma~, represen t simply ban "s that 1•nre not known
gbg to chains and groups.
belo1
as
to be or were not previou sly reported

Prir.cip al Chains and GroQps. ~ecent months have witnesse d the r 8 pid
1
rise of quite a number of ban -c groups of t11e type referred to by tnr Comptroller in his recent stateme" 1t before t:te Committ ee on Bankin.; and Currency. This type of bank 6 rou:9 is gene rallj· centered around a city or
metropo litan bank throug,'1 means of a holcii11b com::;ian~, which owns the majority
of the stock of each bank. Example s of these newly fonned groups , which
are the ones in which the greates t interes t centers at :>resent , are the
Northwe st :Bancorp oration and t,1e First :aan";: Stock Corpora tion of r,~innecpolis, the Guardian Detroit Union Group of Detroit, the First lhtio 1alPeoples Wayne Cow1ty Group of Dctroi t, th8 ;-,:arinG lf.ici.bnd Cor;ora tion of
Buffalo , and the First Wiscons in Nationa l E n:: group of l.~ilwa~{- Je. Some
St. 6526

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Federal Reserve Bank of St. Louis

- 9
l'lf these groups have exp~ndeci tLeir fields of operations be;y-omt state
lines and in one case beyond F3clerc1.l reserve district lines. 1.:ihe c~1ain
systems which have been in 0xistencc for :·;ars, in most of which the
control is held by one or more individuals and v1hich genorall;; ar0 composed of bc.n:::s in the rural com-:iuni ties, do not appe2r to have grown
materiall~r in recent :nonths.

The p rincipe.l grou:)s and. chains, wi fa the nunbcr and loans c:>.nd investments of ba."11>::s included tr.erein, arc as follows:

Nar:io and address of .ra.nagem0nt or
controlling interest

Nw.1ber of
ba rl:s in
group or
chain in
Decemb0r

--+--------

PRnJCI?).L GROUPS
Northwest Bancorporati on
First :Bank Stock Corp.
Guardian Detroit-Union Group
First Se cur it? Corp.
Old Nationel Corporotion
First National-Peoples
Wayne Ctunty Group
Southwest Corporation
First l1ational-Old Colony Con.
Marine Midland Corporation
Transamerica Corporation
First Wisconsin National 3e.n::::
Angl~-National Corporation
First Securities Corp.
First National Ben~

102.ns and
inv es t1ilcn ts*

:hnnoapoli s, Minn.
II

Detroit, nch.
Ogden, Utal1
Spokane, Wash.
Detroit, Hich.
Tulsa, Okla.
Eos-::.on, ...ass.
V
:Buffalo, ,.
.1.IJ. - •
Jew York, ].Y.
:.~ilwaukee, Wis.
San Francisco,Cal,
s:.r racuse, N. Y.
Atlanta, Ga.

92
78
35
25
22

$339, 754,ooo
239,267,000
03, 996,000
34,723,000
32,931,000

21
21
20
19

705,032,000
77,753,000
568,312,000
42 ) , 436,000
1,418,361,000
168,466,000
146,13s,ooo
115,559,000
104,954,000

18

18
17
14
7

PRIHCIPAL CI-:.Arns
Rogers Caldwell**
Otto Bremer
Foreman Family
James F. Toy
A. E. Sleeper
Thurmond Brothers
Geo. Wine;field

Nashville, Tenn.
St. Paul, Minn,
C~1icago, Ill.
Sioux City, Ia,
:Bad .A.xe, Mich,
Oklahoma Cit:,,Okla.
Reno, Nev.

66
71
14
17

16
15
12

131,308,000
52,932,000
27 0,719,000
13,056,000
5,612,000
4,664,ooo
18,911,000

*Based largely on condition figures published in July 1929.
*"'Includes 33 banl:s formerly reported in .A. B. Ben.:s chain of Arkansas.


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Federal Reserve Bank of St. Louis

-

10

-

Si ze of Ban1:ing Chains or J-ro'l"•JS . In order to he.we t:1e :ao2rJ' s
record of chain "l.nd group b,m·rs include e 11 oankir.s ins ti tuticns t.r.r t
might reasonably be classified. as constituting groups or chains , foe
Federal reserve agents were requested to include groups comprising as
few as three b· nks . .A.s s.1.own in t'?.ble 6 submi t ted herewith , there were
at t e er.d of 1929 only nine chains or 6rou)s thut co,~rised more than
20 banks , and onl:, 26 additional groups that included from 11 to 20
banks . Foll owing is a distribution , according to tho number of bnnl:s
i!'lcluded in the groups, of the 287 bank chains and ::,roups reported
at the end of 1929:
0

Num'oer of grourys with --

3$"1

3 janlrn
4- 6 barks
7-10 b,:,.nks

+If!~
~M

11- 20 b.'.ln1~s
21-30 banks
Mo re than 30 b.:mk s

6- f /JfU
I()

-If#td

P-ot1Y~ .._~iJ
'"

Total

287

'fyp~ of Chai!'ls or Groups . W'nile it is difficult in maiy instances
to e bt2in definite inforr.1ation as to t :1.e dc 0 rce nnd method of actual or
potenti:1.1 c0ntrol exercised. by tno .:i..,,nagem-... nt or controlling interest of
the chc.ir..s er 0 rou::_:>s , three rather distinc t types have been r )Ortcd. as
follows:
1.

Control by a holding cor::?or.:::.tion which in the first instnnl.,e
is g\,:nerally formed oy interests connactcd with one or 1aore
of the principal ban.:s balon 5 in 5 to the cn::>in .

2.

Control held or e xercised t:, the :>rinci_r:ml bpm in tho ro p ,
either through direct ownership of stock b!' such princi:.,--1
bank or through ownership '.Jir the s toc!chol dors or d.irec tors of
such princip~l ban.~ .

3.

Owr,crshiD of substnnti,,_l or controlling int3r..,st in .,_ nur.. er
0f ban rs by a single individno.l , fcmily, or group cf incliviciu.1.ls.

At the end of 1929 there were 53 groups of t e first type , ~+ cf the
second and 190 of the third, but this classificatinn according tr, type of
ccn~rol is general cnly , because the reletionship between he banks is
sur.h .?s to ma.t-:e it i.;possible in so.ne cases to :llake a definite classification . In one case, for example , a trust com·)anr whose stoc::: is entirel~,
trusteed for the bencfi t of the s toclr.hold.ers of a n· tional ban 1: has
organized an associate comnany, and the latter in turn owns a majority of
the stock of a number of national and state 'oar~s . F1 ·ther.nor , the
meth')d of control is so.. times changed to :-Jeet foe neP., s of the occasio1,,
but regardless of how ci,ntrol is exercised it seems to ".::e quite evident
t at in most of the recentl~r for;necl groq:is t:iere is cne p rticular metropolitan bruJ.k that exercises the dominetin 5 influence over the other ~,mks
int e _;rn-p.


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Federal Reserve Bank of St. Louis

11

Example s of ban!cs or grou]s t:1, tLll into eacl1 of the three classes
abova mentione d, on the basis of tho Luonl8t ion r3)0rtod at thG enct of
1929, follow:

Name end address of :nana,ge- mnt or
control lin 6 interes t

JITuuibor of
b:c.nlrn in
6 roup or
chc:i.in in

Loans and
investme nts*

Dec om'be r

'J:rpe 1 - Control by holding cor~ora tion
Northwe st Bancorp ora.tion
Minneap olis, !Jinn.
11
First :Eank Stock Corp.
Transam erica Corp.
New York, N.Y.
Guardia n-Detro it Union Group
Detroit , Mich.
II
First Hat-Peo ples Weyne Group
1/iarine-M idlanc_ Corp.
Buffalo , N.Y.
First Nat.-Old Colony Cor~.
:Boston, Mass.
Southwe st Corpora tion
Tulsa, Okla.
First Security Corp.
Ogden, Utah
Old Nationa l Corp.
Spokane , Wash.
Type 2 - Control b;' 1Jrincip al bank
illllerica.n Nationa l Bank
Nashvil le, Tenn.
First Nationa l Bank
Chicago , Ill.
Peoples Pittsbur gh Trust Co.
Pittsbur gh, Pa.
Hartfor d Conn. '.i:r. Co.
Hartford , Cohn,
First Natfona l Bank
Tampa, Fla.
Peoples Trust & Guarante e Co.
Hacken sack, N.J.
Fletche r Savings & Trust Co.
Indiana polis, Ind.
First nationa l 3an..1,;:
Dothan, .Ala.
Fi rs t nationa l Ban..1-;:
Atlanta , G2.
Union Trust Co,
Pittsbur gh, Pa.
Type 3 - Control b~r ind iv idll.8.1 or
Otto Bremer
R~gers Caldwel l
James F. Toy
.A. E. Sleeper
Tnurmond Brother s
Fo:ceman Family
Geo. Wingfie ld
o. s. Hanson

of individu als
Hinnea:p olis, ti:in~.
Nashvil le, Tenn
Sioux City, Ia.
Ead .Axe, il1ich,
Oklahom a Ci t2·, Okla.
Chicago , Ill.
Reno, Nov.
Grand F0rks, N .D.

(In thousand s)
92
78
18
35
21
19
20
21
25
22

339, 754
339,267
1,418,36 1
403,996
705,032
425,436
568,312
77, 753
34,723
32,981

15

7
6

35,470
512,669
167,180
37,186
21,682
25,427
23,926
e,686
104,954
45s,901

.71
6G
17
16
15
14
12
14

52,932
131,308
13,056
5,612
4,664
270,719
13,911
3,303

7
7
7
8

9
7
8

f:,TOU-J

*Based largely on conditio n fi 6ures )Ublishe d in July 1929.


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Federal Reserve Bank of St. Louis

- 12 -

Invest, ent rrusts Sue::::ializine- in Ba"l' Stoc:···s. ·r11e oresent SJ.rv<>y does not incL,de 2n/ L1st&.nc0s ...:·e ·e a SJ.bstar.tial a.11ot:.nt OJ.. ban1c
stoc1 i s o·,·ne1 b--:, en investment trust pnr.:,ly as an investment - vithout
any control . Such casPs, t!:"rough thP acqu.isition of additional stoc!,,
may of cours9 ,i:,ivP. ris"' to acti..;.a.l co:-:trol over a group of ban1-rn in the
course o: time. l'hPre ts or.e srou9 inc:uded in th~ oresPnt comoil3tion
th2t is D"r 1·.eos o: ti:is sort -- that o+- t:w 3-ola 1 en 31.crs rrc:1.cinf Corporation of 1Tev- Yor',;- v·:1ich at the end of 1•123 Tas reported as substantially c:ortrolli"lg 3 ban~s in Fer Y0r~, 1 1n Cali~orr.i.a, and l in
P~nnsylv1,nie., •,-ith a.g[TPgate loans a· d inv"'strriPnts of <1:316,0')0,0,...,0_
1

r

0

Suosidiar1.r Inv':!etrr.~nt anr. Fir:anc2. Co"TI )?niP_s bAlon in-.,. to Grouus.
or Ch, inr. l'~P ste.t:.stics th;--,t r>r.:> hF>r" ures:,rt"d "e to ben ~s tret bolt"'rig to c:·ai11s or {'Touus do n0t includ i •w;:,stn·"nt ben'rine· ho,1s,.,r, joint
stoc1: l·na Of'nrs, trust comn;:,ni. s "'!1g'£'l"d solFily in trust Ol?"retions,
and so-c:c>ll' c.. comrr-rci::il ere-di t or finarc.., compani"s. Th<> °F"'O"rt·l rrs0rv-~ eg 0 r.ts •""'r:') r:ot r' su..,st"'d to list such inv~stri"'nt or finencr institutions in r-porting on ch ins end ~rouos , but in mf'ny cr30s so11"
in::orl"'E>tion ?long this lin.., ·r,s :'1..<rviish"'!d. "<;;<:·min::ition of t11" rnnorts
indic, t s t::::-,t th-- incl J.sion 0f suc:1 instituticns in tir e;rou-c is not
ct rll -.mcommon, in fret t:i,;, indicdio:1S ·r thct "t 1-r.st sor:-"' of th.groups h,.,d d-":init--lr in n,ind th" or.a-&nizr-tion of sucb Sli.bsidi:-rv- inv..,st~--nt ~::1a fin"ncn compPniAS ['S 70Uld m~~n it oossibl.., for th--m to
"ng2.g" in r>ll forms of :finrnci[ 1 op':r:--tions -·- not only comm"rciPl b!"'nk:int:;, s..,vi.!'gs b"rrt :-·nd trust oo".lr--tions, but r>lso in th" uno,"'nriting
0nd flot· tion of s"curity issu"s, furrishing of short-ti~" com~"'rcir-1
cr--dit for finr.rcing such uurch-"S"s rs t'Utorrobil-"s "r.d hous-'hold goods,
--tc .
0

0

0

.Ar-. "'X"mplr of such "ffili' tions Pr' c--rt·,in subsidiPri•'s of thr
·rr,,ns."m:'! ric r> Cornor;:-tio,.., s!lo'.'·n in th· 11 .AlTJ·-ricrn Bl':'Jlr"r 11 of -:;,..,bru,"rY 20.
This 6 roup , in ;,ddi tion to co:1.trollir.g on" b"n1, in r:i-rw Yor 1t EU-'d sr-v"nt""n
in Cnliforni~ with agtrn~rt lorns ~~d invnstm"nts of ovnr $1,~00,001,~00
epp--!lrs to !'k"V, cortrol ov"r t 11 follcr~·i1:g instit-t.. . tions:


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Federal Reserve Bank of St. Louis

0

r"tionPl '9r•n1d t:'ly Co·w· .....y
.Arr..,ritrli,<\ C1..rportion
Bcncf' d 1A1--ric:1. E' d 1 It·lir, 'il"::., It"ly
B:-::1cc-rpri CE'-Bl.., ir Cc ruorr t ion
Coruor"tion of A~..,ric:Prcific i-:'tion"l Fir0 Ir..surnnc0 Comnr,ny
.3.:'n1 :i tr l:r )( ort.e-; rr Comor11y
Cor.nl':-:y of Arr"'ric,"
II
11
Agri cul tur·'l Cr,..di t Ccvrcor,ny
Crliforr..iP JoL·t Stcc1t L'.'nd B:i.n}!--

( St . 652u

13
.l.noth cr instan ce is the G1a:cdi11n D,:itro it Union Group, winch
o:
in additi on to contro llin.; 35 ·bn.n:s ·.-,_;_tn lo2J1s and. Lwest ..11,nts
ial
$400,0 00,000 v,as report ed as co;1tr olling tn0 follo~i 11[, financ
instit ution s:
Gw.rd ian Detro it Co ..1 ''111~'
Guard ian Detro it Co. of Calif.
Guard ian Safe De~os it Co.
Kean Higbie Company
Union Com_xmy
Union Ti tlo & Guaran t~r Co.
na. tional Union Com•?ar:y
People s ration r~l Com.Jany
Now Union :Bldg. COiil)aTIY
Guard ian Holclin g Com2any
0:1io-P enna Joint Stock Land :Sank
Union Joint Stoc!: Lancl Bank

Detro it
II
II
II
II
II

Jac':so n
II

Detro it
II

Clevel and
Detro it

n
Susnen sion or Fe.i lure of Cil.'.'1.in and Group :Sanks. .,\. co,a."?B,.riso
durded
was recen tly made of tho :Soarc i's record of all b.:i.n:,.s suspen
subing the :pcrio d 1921-1 929 d th lists of b,:,.n!-: chains and 0Toups
1929 n.nd
mit t..Jd as of Dcce.,' Jcr 1922, June 1926, June 1928, and June
of
J_ty
difficu
the
to
Duo
1929.
month ly sup_)lo ments since Juno
ularly
partic
g,
bc:nl:in
group
or
chain
0.1
obtain in dofinit. .-3 i11fon 1ation
susthJ
of
all
st.ow
not
ma~,
for t11c 0.s.rlio r yo['rs, such a. com,a rison
on
anf_
,
chains
or
groups
led
p.:3ndcd b;::;:~~s that -.1oro mcmb.:irs of so-cal
ed.
r~?ort
,vero
v1}1ich
ban~:s
ndeci
th0 other :1"r:d, it ,t!.'1:' incl'J.d e so;ne ::;us::.:,e
have
~,
:l.t::!nt
rn::ma~i
as bclong int; to chains or groups , tnou,gh fao
tho
operat ed them entire ly ind.Jpo nde:1t1 -, of the other ban;.-.:s under
sa::io c ontro 1 ,
0

On foe basis of t.1~ best infor.~ 2tion .::ivailD bl0 , howev er, it
,000, rea:ppoa rs that [}. totd of 226 J"'!l.li:G with dcpo sits of $102,0 00
ions
portod ~s bclong in~ to 50 diffor ont ch~ins , sus?en dcd operat
do~)os its
v1ith
DDnks
61
r,
nUlJ1b,3
this
during tho ninc-'' .Jar i1eriod . Of
This
ncd.
r0op.:3
tly
ucn
susseq
of $35,00 0,000 were ro::ior t,.,ci .is h2.v in 0
c:;r
ninc-::
the
durinz
ded
co:.1pa ros with a total of 5,642 b-=,nKs suspen
chain
period with cieposi ts of $1,720 ,000,0 00. In other l']()rds tne
ented
repres
banks t:1ct vere re:port ed. as h·wi.1 6 ::,1:s)e nded operat ions
6 per
aoout 4 per cent of the total nu..1ber of suspen sions and about
cent of the to tal de;ios its of all sus·,?ende d banks.


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Federal Reserve Bank of St. Louis

- 14-15 -

BePrire on Chain or Gro'J.p 3an::-ir.g. ·I'l, e Board I s
State LP
G neral Counsel, with the assistancP. of tr.e Couns 0 1 of t!1e various F0 d 0 ral r 0 servo beU:<s, recontly prepared en enalysis (X-6392)
of state laws aff 0 cting th,, cwn"rsr.ip of bank stoc:<· ':y 1:old.inc
o attPmpt hns been made, hoT."'V P. r, to classify
coruorations.
th~ states so as to show in which st,.,_tes the gro,.,th of chain or
group ban'ring is li 1.<0 ly to b"' rf'tnrdod as R cons· au· nc ~ o: thP
urovisions of stat~ laws, in fact t:1"' analysis coYnrs 19 stat 0 s
only, th,;, r 0 mainin s tc?t <>s ap"!)clr-<mtly not heving odo".ltP.d any laws
on this subj "'Ct .
1

;;

0

I'a1)1 ,:, s on C11aj n or
submi. tt,<,d to s·uool<>m::>nt
banki 1e-, in addition to
to v::1i.c:1 r-.lat -" to both
ban:{i .g:
Tabl-=i

Grouu Ban1rin 7 • I'hR folloi,dng tables ar2
t:v=i a·oovr discussion on c'~" in or grouu
th g"r:•' ral tables urf'viousl, r"'f · rr9d
br::mc11 ban'ring ard to chain .?nd groun
0

5-

Iumb r end loe.ns and ir.v-"'strc<>nts of
ben~s r~portod as OPlor.ging to c ~ains
and iroups, by clasrrs of benks end
by stPtP,s, DPc 0 mbor 31 and Jun "' 30,
1929.

6 -

l:umb~·r of baa.1<- chains c1nd groups distribut"d e.ccording to siz'? of s · stf'ms
and ccordine to t,:p 0 of control, by
stet ~s, D~c 0 mber 31, 1~29.

0

A comol t" list of ban~ chains [>nd grouos, sho,,.in,e: t'1e numb::>r
~nd loans ~nd inv-stm:- nts of ch~in . nd group b, n'rs, by cl."ss ..- s for
bot:1 Deci=·rnber 31 ?nd Juno 30, 1329, hos Plso be,:,n or 0 p' red. A
cooy of this list is nrintl"d r> s 'O[ rt of t h0 s kt "'rr "nt by th" Comptroll<>r of the Curr"'ncy in PP rt II f '011-1.rn-. I of t.. 0 h"'1ri ~g s on
Brrnch, c:1· in rnd Grouo b['n".dn D"'for," th,. . Comrr·; tt..., on B. n'ring
['nd Currrncy of t~P. :o~8P of R or"'s Pnt · tiv~s.


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Federal Reserve Bank of St. Louis

0

- 16 :BRt.TCH
- - - - R\liTKii:-TG
-

Surrrm,,.,_ry for i.fai ted St1,te§___Q~.:l_by Cl 1.sses of :S'1:1lcs. At tho end of 1929
t:10rc ',;ere 622 b·1.r1~::s in the United St'ltcs th:1t mre opcr:1.ting br'3.nchcs.
The tot1.l numb,ff of bi''.1.'1Ches o;ic r ·1.ted by these b'.l.:1ks '.lt foe ond of the
ye1.r ':ns 3,547, 1,;.1d t:1e -:iggrcg".te 101,_,s ",nd investments of tbe b'l.;."Lcs .:md
t :1c ir br'lnC~ll.,S n:: s ~25,100,000,000 or over l~o per cent of the tot1.l
lo::l.!ls ::i...YJ.d i:wvstr.0,:ts of ill:.b::i.rJ::s in the country. Ad.ding tho tot-il munber of br~--iches, 3.547,to t:1c tot-il number of b1,_"1lcs in oper .'J.tion in the
country, 24,6~-5. g.:.vcs '1 tot'"l.l of 1,ppro1eim1.tcly 23,200 b'\.."lking offices
in the Uni tod. St'1.tos. .\bout o:10-0ig;.1th of 1.11 the b':U'l.king offices 7rure,
therefore, br::i;.1ches. .'.. s st,.,,ted in foe first p,-,_,rt of t:1.is memor'.111dur:1, 119
of tho br'.1;.1ch systtJms \".'i th 1,415 br-:1.:1ches 'Uld lo'l!l.s '.1!1d invcstme:1 ts of
.:;6,300,000,000 ,:,ere 'llso ro::_:,ortod :-i.t the end of t:1e ye'.1!' '.ls b0longi:1 6 to
b·1.n]::: ch3.ins or groups.
There •-:ere 106 nR.tion:il b1.:,J.r::s t:1'.1.t vrore oper"..ting 1,027 brmches 1.t
t,1e end of the ye'l.r, ::md t!rn lo'Uls '.l.nd irlvcstmcnts of t:1ese n'"l.tion'"l.l b'U1k
brwch s:;stcms ~ggrog1.ted $9,000,0G0,000 or more th'U'l 4o per cent of the
tot'l.l for '1.11 n'ltion'll b'l.l"Lcs in the cou.--itry. St,te b'l...."llc members oper-iting
brwc:ies '1.t the end of 1929 numbered 180, their bro...'1ches 1,299 'l.nd their
lO'l.!"'l.S ,.,nd Lwestmen ts $9,900,000,000. There ,·,ere 476 nonmember b 'Ullcs ( including rnutu,.,l S'"I.Vings nnd pri v'1.tc b·mks) Hi tl1 lows .311d investments of
$6,20G,OQ0,900, ouor~tins 1,221 brnncl:es '1.t the end of 1929.
Dovclopm0:1ts Durin0 l ·1st si:c

1

ont:1s of 1929.

Since Le b.st report

r:"..s submi ttocl on br'1..YJ.Ch b'"l.!"'l.ldn.:; :1s of the end of June 1929 there l1'1s been
1, net incre'"l.so of 107 L1 the tob.l numb0r of br':1.l"'l.Ches in oper1.tion '1..id a
net incro1.so of 4 in the nu.;nbcr of br'l.Ilch systems. This net incre1.sc in
t:10 number of brmches is ,t about the s".me =i.nnu'l.l r:ite 1.s durin 6 t:10 11.st
t:1reo ;yo1.rs. Some of tl10 1.,_rge br~1.ncL b'1.Ilking st1.tes, ho·,ever, clJ.o·:r but
li ttlc incre1.se in the num-oer of br-:1nchcs in oper'1.tion for the six-month
period, for OA-unple C-:i.1ifor:1.i1., 1nd ~.. ichigm. The princip'.:1.1 incre1.sm for
t:w period ·.:·ero in :i.Tc':": York, Ohio, :?em1sylv'J.Il.i.'.1 'lnd ::::1.sso.chusetts.

_\.l t:1ough t. ere r:1.s 1 net incre'lsO of only 4 in the number of br.:mch
systems <luring the 11.st l1'1lf of 1929, foore ·::ere 1.ctu-:1.lly 36 bw!::s oper'1.t::.ng brwc"'._es .:i.t tl:c e:i.d of 1929 th1,t h'"l.d no bn. aches r;l:.1.tever in June,
t:.is gross 'lddi tion to t:10 list of br::mca systems being offset p'.lrtly by
t:-:.e f~ct t .. '1.t 25 br.'l.Ilch systems went out of existence througl1 merger rrith
other b'1.Ill::s~6 b'.lllks suspunded opt-r'1.tions 'Uld 1 bm:c .'.lbolished its bn.ncl10s.

The net incre,se of 107 in tJ.1e tot1.l numbor of brn.:aches in oper3.tion in
the six-rr.onth period is t~e result of the cst1.blishmont of 82 de novo
brwches -:wd t:10 conversion of 31 b::mks into bri,ches, p1.rtly offset by
t :10 di scon tinu'Ul.ce of 49 br3Il.C es through merger ,ri th other br1J1cl"..es or
otl1er,·Ti se 'll'ld t' e closing of 7 bra.nches follorring foe suspension of tho p'1.ren t b·mks. In other nords, t:-1ore •;rere 163 nev, brwc:-:.e::, in oper'ltion '1.t the
end of 1929 1.s comp1.red ni th June of the s'.U!le year, :rhile 56 of the br1J1ches
tho.t -.-,ere in opcr,tion si;.: mo:aths 01.rlier vrent out of existence.


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Federal Reserve Bank of St. Louis

- 17 Branc~1 Ecnkin-; since ?assa ~e of :1cFadcen Act. At the ti :,e ta2.t the
McFadden Act was "Je.ssed, on Febr:lf'r:r 25, 1927, there were 779 ba.r..:'.:s in the
United St2tes thet vere o·)eratin6 1,929 brcnches in the 11ead office cities
and 971 branc~1es located ~utsiC.e sucl. cities, or a totc.l of 2,900 'uranches.
Since that time there h-:is been a net i'1crease of 43 in the nur..iber of ".:>ranch
bar-k systems and a net increase of S47 in tne number of brenches in operation. Most of the increase re·0rasents brancnes located in head. office
cities, the number of w~1ich incr-3~.se<'l fro,u 1,929 to 2,432, er b? 503. The
number of branches located cutsid.c of head. off'ice ci ti3s increased froL1
971 to 1,115, or by 144. The annual increase in the number of "Jranch3s
has aver,ged over 200, and this rate has been maintained in the last six
:non ths.
0

Althoubh there were 206 banks operatin 0 bre,nches at the end of 1929
that had no brar.ches v;ha tever when the EcFad.:..on bill boca:ne a la·,, there
has been a not incr0ase of only 43 in tl-.ce nrniber of branch S?stoms since
tho passage of that : ..ct. This is due to the fact that 120 br-:in d 1 SJ' stems
went out of existence t:1rough merger with other bz.nks, 15 susJend.ed O)0rations and 28 abolished their branches. Of tho 28 ba.n.Y.:s that l1ave abolished
their br~chos since February 25, 1327, 26 had only 1 branch each, and 2
had 2 branches each.
It is also found that of t~e 2,900 branches that were in opor2tion
on Fe'uruar: 25, 1327, 224 have since bone out of existence -- 194 h2-.ving
been discontinued or merged with o bor brancnos B.Dd 30 going out of existencG following tho sus:)ension of t.ciG :;;a.rent bank. There was a bross
incr a.so of 871 in tho num'ber of bra11chos, of which 511 wore cs tablishod
de novo and 360 wore inC:.op,:mdont 'baru~s that were purc:w.sod and converted
into br2nchos. Sinco foe )a.ssa6 0 of the McFadden Act thcro have boon a
number of roergurs of sor:io rat~1cr large size branch ban 1r systo,as, thus
bringin_; to existence even larber syste::1s, the princi~_)D.l ones bein.; as
follows:
0

Pacific Southwest Trust & Savin.;s E.311k, Los }.J1 6 eles, wi fa 100 -..,ra1,ches
consolidated 1,vi th first ~rational :Ban.. ancl its one branch to form
the Los .Angeles-First 1TA.;;io.,rl Trt1st f.· S"'vin6 s :Sar:.!·:
Security Trust & Savir. 6 s :.O ..,n~:, Los A.nteles, wi t 11 ~!~ l1r2nches
consolidated ifa Los ..... n;el•;s-First Netion-:-1 Trust S: S2.vini:,s
Ea nl-.: and its 95 oranches -:;o for.1 the Securi ty-:,'Tirst 2Jation-:i.l
Bank
Peoples State Ban}::, Detroit, :iich., r!i th L+G branches
consolidated with t~1e Wa·rne County & Home Savin.;s Baul:
and its 47 branches to f~r.r, ?eo_iles-Wayne Count? J3a:1l::
The number of branch~s operated '!:>y lktional 'bc3n~rn and '"Jy state "o&nl~
members of the Federal Reserve System has been ma teriEl.lly affected by tho
nationalization of a number of lp_rge state b3.nk branch systems in Cp,iifornia,
either directly or by merger v!ith existing n"'ti)n;;l b·ul2·s. T}:ese include
the Bank of Italy of San Francisco, the Pacific Southv1Gst Trust and


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Federal Reserve Bank of St. Louis

-

18

...

Savino-s
Bank of Los J~n 0"'el2s, and the Security Tn:.st & Savings :Bank of
0
'
Los ..\.ngdes, which i1ad a total of .+25 branches when tno ificFadden bill
became a law. Tnorofore, it is found that p.q,rtl~- because of this fact
the number of trnnchos of n,?.tionr.l bnrr.:s incrocJsed :from 390 on Fobrnar;:;
25 , 1927 to 1,027 2t t:he cad of 1929, whilo t:he nu;,noor of brnnchos of
state 'J:,nk members doclir.Gd from 1,560 on Febru.s r;; 25, 1927 to 1,299
at tho end of la.st :reDr. T'11oro hr.s also been e. consid0ra'Jle incroi.lsO
in the num·oor of branch"s of nonmombor oenks, of which thore wore 950
on February 25 , 1927 and 1,221 at the end of 1929 .
Following is a sum::1ar~r showing t:1e number cf branch systems and the
number of branches in operation on Febrmr~- 25, 1927 and Dece:nber 31, 192'.)
by cle.sses of b?nks:

Clnss of tn1::::

Total - ~11 clossos of benks
Nationol b"nks
State b'lnk members
State b,:tnk nonmembers
Mutual savings bcr.ks
Private banks

Number of br-n.,rn
o-per2,tin;1: br~·.nches
Dec . 31 ,
Feb . 25,
1927
1929

I

Number of branches
Dec. 31 ,
1g2g

I

Fe'u . 25,
1927

822

779

3 , 547

2 , 900

166
180
407
65
4

145
189
337
50
8

1 , 027
1 , 299
1,115
99
7

3 90
1 , 560
s63
76
11

Developments sinee June 1924 . The first com:;ilete statistics gatl1ered
by the Board on branches of bo tl1 member and. nonmember ban...s were for June
1924 , at which time ~14 banks 1Nere reported as operating a total of 2 , 293
branches . There was , therefore, an increase of a:p·:,roxL.atel;y 600 branches
in the three years ,;ireceding the lf.cFadu.en .Act , about tiie same r ,, te of
growth as has taken i)lace si nee that 3.c t was :9as :::ed. lTa ti onal ba.rcs at
the end of June 1924 were operating 2 1+8 brc,nches, state bank rneinbers
1 , 137 branches and nonmem'uer tanks (includin.,; mutual savine;s and ~)rivate
banks) 908 branches . Of t~1e total number of 'urn.nc . . ws in operation in June
1924 , 785 were located outside tl10 head office ci tics rrnd 1 , 503 in tho head
office cities .
In the five and one-half --ears ending with December 1329, t>.ere Wes
an increase of 330 in the n umber of branches located ou tside hoad. office
cities and an increase rf 924 in the number of branches located in he,"'.d
office cities , or a total increase of l ,?,54 brwcher1 . This co~arison
is shown in more detail in accorn:_)a~ring tables .


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Federal Reserve Bank of St. Louis

- 19 Princioal Branch Ban~ine States and Citi s. l'hP 3,547 br ~chPs
in ooer~tion at the end of 1929 w0 re locatPd in 30 sta os, l,26~
b~in6 locatoa. in 10 statPs in v>hich statP- ·ide brench ban'rine- is
?"'rmitt2d by lav or implicatior!, 2,207 in the 12 stc;.tes i:r.. whj ch the
ooeration of bran~½~s is o"rmitted but restrictod as to location, and
54 in 6 statAs in i,;hich t:~e f-1rt'1er cxt-nsion of branch banising is
orohibit d by law. ThPre are, tJPraforP, brancbes in ooPration in
three-fifths of t:1<" s tat''!S, but tl-ie er0r- t '11&..j ori ty of the br'-'nches
are located in a relativqly f
stat~s, in fact t~o-thirds of the
total rn.1.rnbBr are in 5 statPs - CRlifornic1, }Tev· York, Hichiran, Ohio
and P.::>nnsylvF1nia. Four other st, tcs, ho~" 0 v0r, ;:,lso h2.d more then 100
br!'..nch<>s in oo-=-ration et th-- .,nd of 1S2~ -- Vasrechus,,tts, JTp,r J;')rS-"'Y,
Louis inna ~-nd •1 ar7 larid.
0

0

~

Wh.:tt might 1.)e tPrmed E'S 11 locPlil brcnchFJs, i . P . , bnmch:.s loc,":t<>d
in th;') srun" city t•s tr,o uer"'nt bnn1{-s, L'r" lsrg,,ly confin::-d to e. f w of
the urincioal cities of the country, in fact 10 cities account for
l,059 or
o~r cent of the total 2,432 local branches. rte numb 0 r
of branch 0 s in operation in each of these citi 0 s at the 0 nd of 1529
was as follcws:
0

68

.evr

York
San Francisco
Los Aneeles
Dotroit
Phi2.adelohia

Cleveland
Buffalo
Baltimore
Bcstcn
Cincinnati

580
*97
*201
*30:J
133

35
73
05
bo

*~O

"Sxclusive of thcs 0 branches ;,:}-,CSP hicad officPs ~re lee ted in
ot:ier cities.
Size of Branch ~e~r S•stoms. At the "'nd cf 1929 th~re wer 18
banks thtt vArP nn°rating ~er than 30 branch 0 s, the twc larp<>st being th0 Bank cf Itcly Neticn&l Trust i Sevings Associati on , San Francisco, and the Bank of A.rrerica r,f Califcrnia, 1 -:-s An.cr"'lP.s, beth of
which are contrcll<>d by thP l'ransam...,rice. c~.ru·:r" tir.n group. ThrP<> rf
th"! rth,"' r lPrgF' systoms else b"'l:'ng tc [• singl;, e;r~up, viz., the
Pe' -olPs-7.'aynP Ccunty B;: nl<:, the Fir~ t Tritirne.l Bank :md th 0 PPninsulrr
St< te Br~n~< "'f Detrc:-i t, J.'ich., ..,..}1ich he.d a tr:tPl "f 15c br.:>nch"s <'t
th,=, "'nd f 1929 e.nd which Lr~ all pl.rt nf the First :!'',!tirm 1-P"'"Dl"'S
W' yw' C -unty "'r"up. In addi ti"n to the lo brench systP.ms that '!'·ere
''Jerating 30 'r m~re branches at the end ~f 1929, t 11E>M rere 41 bank-s
cneratin!". 11-30 branches and 41 ~ thAr ban'rn · ueratine b-10 brancl'PS .
.'rre than half '"f the branch systems, hr r.evn: (4l.!6 r, t "f e22) had
:nly 1 branch each, 150 had cnly 2 branches, and 124 h~d 3-5 branches.
0

On February 25, 1927, rh8n th 'cFadden bill became a law, there
wPre 12 brnnch systems with 30 ~r m·re branches. The fcllo~in~ list
sh'ws ttP. large branch systems in CDerati~n b~th rn fobruar· 25, lj27
and D"'CP.~b~r 31, 1929, and thr disorsiticn made rf thr.se syst<>ms which
"er-0, in r,peratir,n hen the UcFaddAn Act as passed but havP. since
m~rg~d ith nther s st2ms:


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Federal Reserve Bank of St. Louis

0

st. 6526

of branche.
Dec. 1 l92L

Location and name of parent bank
Bank of Italy Na tio!lal Tr. & Sav . .Assn.
*Benk of .A.r:ierica of Californin
Security-First lfationa.l :Oank
Pacific Southwest Trust & Seci.l.ri t:r :Bk
Securi ~r Trust & Savin 6 s :Bank
*California Bank
Merchants national Trost & Savinss :San:c
Citizens fatio1al Trust & Sovings Bc;nk
.A.merican Trust Com\,any
Peoples-Wayne County Bank
Peopies State Bank
Wayne County & Home Savings :0Pnk
First N3tional Bank
:ttonin"ular State :Brui:::
Corn Exchange Bnnk
Bank of Ma..'1hn. t ta.n Trust Co.
B.:'.nk of United St~tos
Manufncturers Trust Co.
N:1tional City Ban:.::
Public N~tion~l B~r~c
B~nk of Americc., N . .A.
Cleveland Trust Compn.ny
M..'l.I'ine Trust Company

sun Francisco
Los Angeles
II
II

11
II

II
II

So.n Frn.,1ci::;co
Detroit
II

II
II

11

New York City
II

II
II
II
II
II

Clcvel?nd
Buffalo

(a)27s
(b)
(c)
98
49
45
34
(e) 24
92
(f)
46
45
2
29
62
4o
6
14
18
27
7
52
32

237
160
139
( C)
( C)
56
( d)
31
94
94
(f)
(f)
(g)33
"31
67
64
( e) 57
(g)45
37
33
(g)34
57
33

*.A.11 bnnks .n.rc now m.ombors o ... tho Federal reserve system except those
In.."l.rkcd with an asterisk.
(a)This was a state banl-: member on February 25, 1927.
(b)This branch system is the result largely of mergers of s;naller branch
systems and the purchase and conversion into branches of a number of
independ.ent banks.
(c)The Security-First lfatio,al BanL is the successor of tho
First National Bank, the Pacific Southwest Trust and Savings Eanl: and the
Security Trust and S1:.vings Bank.
(d)Absorbed by the Bank of .A.mericn of C~lifornin.
( e) This was a nonmember ban1': on Fcbruarr 25, 1927.
(f) The Peoples-Wayne County B:~.n.1.: resulted fro., t,10 convcr .,io, o: the Peoples
State B~k D.nd t:,e Wayne Count:, e..nd Homo Savin_;s :.,nlc.
(g) Increase in th.3 number of branchGs due lorgoly to tnc <1bsorption of other
branch systcrns.
Br8.nchos Located in Small Ci tics. In connection ,vi th the br.:mc:1Gs located outsido the head offic8 1/n.Mibering 1,115 or ner,rly one-third of all
branches in operation at the end of 1929, 1t is interestin to find that y
far the greater number of these 11 outside 11 branches are located in sra!lll towns
and cities. Of the 1,115 outside branches, 612 were in fact located in plcces
that had less thM 2,500 popub tion in 1920, including 208 in C.i.lifornie.,
in Louisiana, 44 in Maine, 52 in :L.,rylo.nd, 46 in North Carolina., 34 in South
Carolina, 32 in Tennessee, 28 in Vi r 6 inic.., 21 in i.~ist;i s..,ip.9i, n.nd 93 in 15
other states. Besides these 612 orancl10s loc ted in :_)1--ces of loss t .''.Tl
2,500 populo tion, there were 136 brc'..nches in pl·,ces th· t had :~ ::_)opul:- tion of

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Federal Reserve Bank of St. Louis

s4

A A

- 21 -

A
5,000-10,00~

11 outside''
There wore 281/
branches re:;?orted 2.s being loce1.tad in citios with a popul'"tion of 10,000 or
more, but this figure rcprGsents largely br0nches of tho sk,tc wide-branch
systems in California whoso he~dquarters are in Son FrQncisco nnd Los .Angeles
but which have branchos in such other b .rgo cities as Oakland, Sacrn.CJ.ento,
San Diego, Long Beach and Pasadena.

2,500-5,000 ond 86 in 'l!r>. cW'

vifa popul· -tion of

1

The first tabulation made of branch b2.nking accordinb to size of towns
in which the branches are located was for June 1928, at which time there were
572 branches in places having a J?OJ.)Ulation (in 1920) of 2,500 or less. During the ensuing year and a half, therefore, there has been an increase of 4o
in the number of branches located in such small places.
Method of Establishment of Branches. More than two-thirds of the
branches that were in operation at the time that the McFadden bill became a
law were so-called de novo branch0s, i.e., established as branches in the
first instance. Most of the remaining branches had at one time been in operation as inde?cndent banks, having been purchased and converted into branches,
but in a number of instances the method of establishment was not ascertained.
The number of de novo branches has increased by 383 -- from 1,996 to 2,379. -since tho pRssage of the McFadden bill, while the numbor of indo;)cndent bruiks
:purch::,_sed ane. converted into branches ( including branches for which the
method of establishment w~s not ro?orted) has increased by 264.
De novo branches of national bnnks numbered 635 at the end of 1929 out
of a total of 1,027 bra.nches; state bank members operated 967 de novo branches
flUt of a total of 1,299; and nonmember b2IL'ks ( including mutual savings and
i1rivate banks) 777 out of a totnl of 1,221, Nc.tional bamcs show a considerable increase, since the passage of the McFadden .A.ct, in the number of
branches resulting from the conversion of independent banks, but this is due
largely to the fact that some of the large state bank branch systems nationalized or were consolidated ~ith national banks after the passage of the
McFadden Act.
The fallowing table gives a classific2tion of the number of branches
in operation on February 25, 1927 an d December 31, 1929 according to method
of establishment:

All cla,sses of banl-:s
Feb. 25, 1927
Dec. 31, 1929
National banks
Feb. 25, 1927
Dec. 31, 1929
State bank members
Feb. 25, 1927
Dec. 31, 1929
State bank nonmembers
F,Jb. 25, 1927
Doc. 31, 1929
Mutual snvings 'ban1'::s
Fob. 25, 1927
Doc. 31, 1929
Private banks
Feb. 25, 1927

Doc. 31, 1929
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Federal Reserve Bank of St. Louis

Independont jlfotl1od of
To ta,l
De novo baIL'ks con- establishbranches branches verted into/ ment not
branches I reported

2,900
3,547

1,996
2,379

735
1,017

169
151

390
1,027

279
635

88

368

23
24

1,560
1,299

1,034
967

471
296

55
36

s63
1,115

627
697

174
351

62
67

76
99

53
77

2
2

21
20

11

3
3

7

1

- 22 Interstate Brr1nc:u-mki!lg, T.1ere ;1,re two insta.11ccs of bmks operatin stat'-'s othor th8.11 t:_oso L1 '.Lic:1. ti10 p:1,rcnt b9..i1ks .:ire
brru1c}10s
ing
situ'ltod. 'E'lo B':l.11lc of C:i.liforni:1,, lJ • ...\.., S-u1 Fro.1.cisco, .:1 conversion of
t:1.0 B::1...11.:!c of C:1lifor::.iCl. into '.1 n'ltion:tl bmk in 1510, opor·1.toc 1 br;JJ1ch in
Portl'l...'1.cl, Oro., 1 L,. f:i:,.,ttlo, Ybsh., .::i,nd 1 in T.:1corna, \'i'1sh. , '111 of which
becu:.no br .').i1c:1.uc of ,;l, c, P...1.111':: of C'1.1ifor11i'1. in 1905. Prior to 1905 tl::oy
·.rere brmchcs of t.!10 I.or,d.ori -u:d S::m Fr'..incisco B·wk, Ltd., w!1ic~1 w1.s succooc'.od by tho B-:mk o:f C'1.liforni'1. '.i:11.o otl10r C'lso is t:1'1t of t:1.0 .?irst
c.._'1ldon 1T ·1 .tion1.l B'l.11~ o.nd Trust Com]_)any, ~To'il Jersey, ,ri1ich operates 'l
br:111ch in Phil-3.dolp:1:'_i '1, This br'.1l1ch ori 6 in':..lly ewe in to exi stance in
1813.
Suspo:1sion or F-u.luro of Br--i:1ci1 B'1.:1k Systems. On tn.e b'"1.sis of reports submi ttccl to tho ]'0dcr:1.l R-.;s,Jl'VO Bo·ird on b-:mk f'"'..iluros or suspensions '1.i1d on br.:mcl: b3.Ilking, it '1ppo'1.rs that during t~10 nino-yonr period
1921-1929, 3. tot.'.11 of 41 bra,·ich bank systems su.spondod opcr:ttions. These
brn..'1.ch systems wore oper.' 1.ting 9 br::mc!les in h1.,-:i.d office ci tics nnd 71
br3nchos outside such ci tics. Tli.e tot.::i.l deposits of the 41 b:1nli::s .::i,nd
their br....:1cl1cs ·:roro $49,000,000. Five of tho br::mch systems, 4 of rbic:1
1 opor,' 1.ting 2 br'1T1c:1cs, subsoqv.eu tly re...
,1oro opor::i.ting 1 brnnch e'1.ch :1"ld
opened. L'1.tcr o~e of ~~e syste~s '1.g'.rin closed.
Of the 41 br.'.1J.1cl1 sys turns t:1'1 t ncro rcrported '.ls h::wing suspended during
the period 1921-1929, 29 h'.1d only one br:u1cl1- e'1.ch, 6 h'ld t'.;/o br'lllches, 2
h'1.d three br'lnc:1es, 2 had four br'.1nchcs, 1 h'.1d five branches .'1l1d one h'.1d
ti7onty br::mc:1es, The l'ltter b'.1l11;; -i,nd its brcmchcs 't.t tho time of suspension
vrcro reported to h::i.vc I's'ld deposits of $2,805,000.
Follovrine; is -:i. sumrn-i.ry covering tho suspcns:on of br-inch b:ml:: systems
during foe ninc-yo'U' period.

Yo'U'

Number of
branch b1ri.k
systorns sus--:>ended

'.2oto.l
dcposi ts

I Number

·-

of lJr'Ulchcs in~cr~tion
L1 ho'J.d Outsidu
office hu'1.d office city
city

:3r:mch svstc1ns roononod
Number
of
ts
bor 1Deposi
br,'.IDchos

N'UJ'l-1
I -

II

I

1921
1922
1923
1924

5
*l
l
4

$10,917,000
1,151,000
23,000
1,365,'.)00

-

1925
1926
1927
1928
1929

2

1

3
4
10

2,209,000
7,443,000
2,851,000
2,895,000
19,955,000

1
7

11

41

4s,s19,ooo

9

71

11

-

-

5
1
l
5
l
33
7
7

I

I
I

l

l

I

s14,ooo

-

-

-

2

-

5,882,0GO

-2

4 1~,742,000

5

1

I

1

.
2

I

Tot3.l

I $4C,ooo

*'E.:is b'3.!lk reopened but closed .,,s1.L1 '.Uld is not t:.oreforc includod
\7i th the reopened bo.nks.
St. 6526

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Federal Reserve Bank of St. Louis

- 23 -

State La'.7s Reb.ti~ :Sr:nch lla~1ki:ng, The BoD.rci 1 s Counsel,
with tl1e assistance of tho counsel to tl:e various Federal rer;erve banks,
recently :prepared an up-to-date digest (X-652s) of sh.te laws relating
to branch bani.:ing. The sw,:mary st3,temont that accompo.nieci t"Lis digest,
in ·N:1ich t~e states are classifiud into four groups, is sl1o·rm belov,.
It v,ill be noted tl1at under the provisions of stA.te laws, state-··.ride
branch ban:::ing is p0rrni tted in 9 states; it is :permitted within lirni ted
areas in 10 states; and in 22 st1.tes it is prohibited entirely (except
as to bra!lches in operation at tho time the prohibitory legislation r1as
enacted). Seven states have no legisl~tion reg~rding branch bJJlking,
but this incluu.es Kentucky, in w:1icl1 the establishment of additio.1al
offices or agencies is pcrmi ttcd under court decisions, and Michigan
where the stacc banldng dcpartn;ent has raised no objection to the c·stablishmcn t of branches in ci tics in '.v:1icl1 tl10 p;J.rent ban~:s Cl!'O located,
There were 23 branc:1os in oper:.,,tion in Kcntuc!cy at tho end of 1929 and
439 in Hichi~ru1, as comparod nith 13 and LfOl, respectively, ,on February
25, 1927, whe:" the:; McF1.d.don bill boc.3,mo a law. The Dis~rict of Columbia
is not includ.:;cl in this surrnn·u-y, but banl:::s in Washington may establish
branches a.:1yv,:10re in tl1e d.i strict •
.\.ccording to information wl1icl1 has come to our attention, four
states -- ifontana, Nubraslm, IowD. and "Jest Virgini:1 -- h~vo enacted.
legislation prohibiting t:10 e stabli shrnen t of brnnc:10s since the p3.ssage
of the :,'.cFad.den .\.ct. Tho state of Goorfia passed similar lorisl::l.tion
in 1927, but in 1929 tlw L:w, rr.::i.s again a;nended to permit the establishment of brD.ncl1es in head office cities, provided such cities have a population of not less than 200,000. In 1Jcm Jersey the state law rras amended
in 1927 to permit tho establishment of brnnc:;.os under tho same conditions
as govorn national banks. Ij_1 Pennsylvania, logisl1tion was on.:i.ctcd in
1927pormittin6 tho establishment of brG,.'l'lchos \,i thin tho corporate J.iini ts
of those ci tios in which n:1.tion:11 bo.nlcs \·ro~·o op0r'.lting branches or: liiarch
1, 1927. In Vermont logisl1.tion vr.1.s recently enacted pormittinG t:10 est3.bli shmont of 'l.goncics, ,,-,:~.ich for ·ul ~-) r.'lc ti cal purposes seem to be the
s.::imo as branches.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

st. 6526

- 24 -

States permitting
st'.lte-·;;ide branch
b.:m:.cing

States permitting
br'.l.Ilch ban:cing \7i thin limited 'lreas

_\rizona
California
:;)el'.lW'.lre
E'"l.ryland
iZorth C::i.rolin3.
Rhode Island
Sou th Carolina
Vermont (1)
Virginia

Georgia ( 2)
Louisiana (3)
1.:aine ( 4)
?•:c1ssachusetts ( 5)
:.:i ssi ssippi ( 6)
"'r~ew Jersey (7)
1Te ,7 York ( 8)
Ohio (9)
Pennsylvania (10)
Tennessee (11)

TOT\1 . •

9

1

TOT.,\L . . •

10

St'ltesprohibiting
br.:mch banking

Kentucky (12)
1:ichigan ( 13)
UeH Hampshire
1' orth Dakota
Oklahoma
South Dakota
·;1yoming

..U'lbama
Ar:..ansas
Coloro.do
Connecticut
Florida
Idaho
Illinois
Indiana
Iov;a
Kans'.ls
!.!innesota
I.'.i ssouri
l:ontana
:Jebraska
:Tevada
New Jexico
Oregon
Texas
Utah
Washington
:Vest Vi rginin.
Wisconsin
TOT_\L .

States having
no legisb.tion
regarding
branch banking

22

TOTAL

7

(1) !Jo provisions regarding brn.nches but State- wide esb.bl:i.shment of
11 agencies 11
permitted.
(2) City or !IIUi1icipality.
(3) ~nnicipality or p:'.rish.
(4) County or adjoining county .
(5) Same town .
(6) Sarne city .
(7) Same c:i.tJr , torm, tormship, borough or village .
( 3) City limits .
(9 ) Same city or city or village contiguous thereto .
(10) Corporn.te lLnits of same pb.ce .
(11) County .
(12) Ho provisions regarding branches, but court decisions permit establishment of additional offices or agencies to receive deposits
and pay checl-::s .
(13) "Industrial b:i.nks" imy establish branches in city or village of
head office; but no provisions covering establi~unent of branches
by other b'lnking institutions .


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

st . 6526

St. 6526
TA5LE 1 - N'J::::SER .ru:rn LOANS R:JD INVEST:,:~ns OF ALL BA~JKS AND BR.!\NCHES IN THE UNITED STATES
_urn OF BRAi.iCH Alv'D CHAIN OR GROUP BANKING SYSTEMS, DECEW3ER 31, 1929, BY CLASSES OF B.A.1'ifKS

(Loans and investments in millions of dollars)
Total-all classes
Nonmember banks (including mutual
:National banks
State b.ank members
of banks
savi.n.fl'.'s and uri vate banks)
Number of Loans and iTum'oer of Loans and Number of Loans and
Humber of
Loans and
banks ( or investbanks (or invest'oanks (or
invest'oanks (or investbranches)
ments
'oranches)
men ts
branches)
men ts
branches)
men ts
All banks (head offices) in United States*
Bra..'lches
Total -- all ban.1<ing of.fices

7.~3
1,02=]_

~30 -· 21,534

Ba..'lks 'oelonging to chains or groups but
operating no branches

1,984

4,913

757

2,825

Banks belonging to chains or groups and
t'1,"'rating 'oranches:
H'3ad offices {p3.rent banks)
Branches

119
1,415

6, 26~-

45
550

3,083

:s that do not belong to chains or
roups 'out operate branches:
A.. Head offices
..,. Branches

703
2,132

18,839
( a)

121

5,9o6

Inde:oena.ent unit b:m.!cs ('owks th'.lt do
·10t belong to ch!lins or 6 roups ::md

'J,1,/-

( a)

,.2,18

22,~

901

1,129

1,186

636

38

600

~
~

ol

477

142
699

7,448

440

5,484

956

1'1

1

=:-:C1.==o=n=o=t=op=e=r=3.=t=e=b=r=a=nc=h=e=s=)=======-===~l·= •~===2=8=,4=~==:!=L~==-6=,4=8=0===9=,7=7=0:=:l:::==8=4=1===3=•5=0=5=h:=1=4=,=5=~=~====1=5=,=l=~=====


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

*Excluding private banks not und.er State supervision, :lroI t·no sh.to" i;fte Doeeffi-Oer figures foP State 1:ie:nl!:s aro not
a>mila::Olo, 9:rn:i in thooo caooo tho la.toot a 1milablo a::Ootr:1ct was usod.
(a)Separate figures not available.

T.\:BLE

2-

r'UMBER OF BX:JKS

.urn

BR.Al:JCHES .:u~D lJUM3ER OF BRANCH .\ND CHAIN OR GROUP J3.\NKUG SYSTE.ft.S, BY STA.TLS, DECE'ffiER 31,

.1929

st. 6526

B:mks that do not belong to
Nu.-nber of banks that belong to
!
Total
In <;:ocncl"-'n t
chains or groups but
E-rouos
or
cr..ains
,
Total
Total
number
unit
operate branches
Operating I Number of
Operating
number of
number
of banks
State
banks
Humber of
Number of
branches j bra.l'lches
no
ba."lldng
of
(Head
branches
ban!:s
I op"-'n,ted
bra,1ches
offices
branches
offices)
----.!.._ _ _ _ _ _ _ __
- - - - - - ' - - - - - - - - ' ' - - - ' - - - - - -- ·- - ' - - - - - - - - ; - - - - - - - - ' - - - - - - - ' - - ~ - - - . ! _ __ _:..=:,

I

~

llp

~

17
---=-24.:..i·..:::.6~..:..L.:..--~3_z_.,5,!_4:. J7. .f_ _ _28~.1=-L~~~-+--=-1
369
19
350
63
22
46
413
3
415
1,300
363
437
274
274
10

TED ST.\.TES
~.:.ab.'.lJ'Da
\.ri zona
.\r?...ansas
California
Colorado

Connecticut
Delaware
Jist. of Columbia
·o o:rida

Geer

·'.l

L<•

237
47
41
235
405

13
24
39

237
60
65
235
444

-

Kentucky
Louisisn3.
. \'.line

.,i:tr;yl wd
':1.s s3,chuse t ts
:~ichi;'.1.."l
' innesot3.
.... ..ississip,:,i
Missouri
~on t:mri


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

137
1,765
~11,q
1,257
1,069

137
1,765
9

9i,e.7i

1,257
1,069

600
331

3
3

l~o

i-9- h,
'

Idaho
a .Illinois
W,Indiana
Iowa
K--:msas
-

,4,

2 -----=21~ ,~33'7~-- -9~34-=--_ __-=:11::..,l9'.____ _1=..;,L. . .:4-=-15L__ ___J1~0.L3_ _ ___:::2,p_;:n,£..=
323
19
5
22
33
22
7
6
341
3
2
72
343
316
45
547
3
41
253
16

-

t 'J-

-et:J lf

1

5

13

3

13

8

2

106

7

5

21

354
611

32

13

53

743
1,046

439

1,132
1,052

109
306
20

26
2

353
6

1

2

l, 277

195

25

33~~

1,277
195

36

45

r,' ly

~~

-

229

37
29

195

7f&~/o9

96
1,631

41
34
16
37
33

23
106
63
124
161

3:H-o\

13
24

-

-

572
225
133
230
450

6

7
12

-

-

-

9

3

4

4o
19
30
75

7

15
97
42
124
108

549
175
102
200

36

g6

10

23

572
733

9Grlf1

1,170
981

330

1,241

150

7'/

T.IBLE 2 - (Continued)
. ,.

I

St'lte

iro tal

Tota.l
n11mber
number
/ of b:lllks
of
(He'1.d
branches
offices)
2_
- -8-04·---'-...,____

_J_
. .braskaV'ld'.3.

~

. _ · ~a.'llpshire
~ ew Jersey
~ ew Mexico

35
123
568
56

103

1,127
416
Jorth Carolin::i.
412
Norfa Dakota
1,015
Ohio
617
01::1 :th oma

722

234

1

33

185
35
57

:·ew York

0!· -.s-:on
Pen~sylvania
(r ccle Isl :md
1.1.th C'.\l'olina
•
u th D::i.ko ta
!1nessee

-

Tt..:X'.).S

Ut'lh

rermont
Virginia
"7'.lsr.ington
.est V1rgi!li 3.
."!'yoming

1


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1,566

d7

77
268

387

484
1,308
104
104

474
340
297
960
86

68

Total
nwrl,e r of
br-i..viking
offices

Number of banks that belong to
chains or erouns
Operating Number of
0.1>eratinb
branches
branches
no
operated
br.'.l!lches

806
35
123
671
56

73
13

1,849
493
412
1,283
617

84

47

2

13

27

18

271

460

42

47

n4
3

88
39

451

937

77

377
296

250

957
:,32

3

18

52
1

1

7

13
14
- I

73
10

172
21

85

1

21

'

ll

84

37

H-10

.!yf5',,

21

31

5

345

7"4

1

2

57

1

4

7

32

*Inclu~es June 30, 1929 figures for Stnte b.:mks
**Includes October 1~, 1929 figures for State b'1.Ilks

J

1,..,.

'5

2?......,.

20W"~
,..,
3c:o

431
1,224

26
1

86

729

22

n4
535

9

unit
b'.).IlkS

123

10
61

297
969

2

I J.ct>Emcien t

9

235
1,751
68
274
387
552
1,308
104

Banks that do not belong to
chains or eroups but
operate branches
Number o: ; Number of
I bro..11ches
b'.3.llks

10

78
96

39

61

435

2

3

263

5

297
897

5

5

st. 6526

_______

U.mo·1.1.."'lts i:::i. millions ---------"'-::_.::...,._
of .:..011'1,rs)
:i3'm:ts th-tt belon~ to
]::ial::s U1at do not
, ·
b e.Long
,
t o c h 'Uns
· t eQ' st ·1 t·es __c_n:-uns
1Un1
~- groups
includint:,,
Opcr·itin:3 /Op0r:1,tinb
or groups but
br'.1,Ilchcs)
no br"l.i1C}1cs br .. ._:nches
o:p0r'.'.te br1.J."'lC}:.c_s__

_\.11 b'.J,11~:s in

l
St'l.te

I

UNITED ST~~~S
.\.1 'l.b '1ID'1
\.ri ZOn'.3.
\.rk'1!1S'1S
C'l.liforni'l.
Color'ldo

(

\Y_53,~17
c.3 2

Id'lho
Illinois
Incli'Ul.-'.l
!OW'l
=='.:1Il.S'1S

50

262

30

1,336

37

167

1

25G
334

134

31

37

3,802

L~o4

554

429
433
837

4,225

'J../1,

1,350

2
1,339
1,299

60

os

124
~l.3/.r;

3,:-6"

44

1,212

22

19

692

37
17

21
91

316

521

225

534

960

12
158

3

318
27

17,222

]' orth C'1rOlin'1
l~ or th D:1ko t ;1.
Ohio
Old'3.hom'l.
Oregon
Pennsyl V'.ll.1i -:i
Rhode I sbnd
South C'.lrolin'.3Sou th D'l...lco t3,

370
112

2,691
401
260

5,703
533
169

137
430

1,036
162

250

8

62

20

289
18

311

1,163
33
226

1,785

58
32
103
82

663
11

f!, '-I

135

142
--,.

"'-

10,362

4,849

151

219

1,379

1,226

23

54
293

1

177

1,807
233

3,093

5-r-.3

147

½-&tlo8
90

47

126

70

211

104'

932

50

112
222

27

1

120

917

77

191

68
135

3
4o

22

>!$Ineludos J:eo 30, 19~ fig:1-i:POB fe;r;i ats,ti °QMl.Ge.
,.,,,Inclad:cs October ~I, 1_3£:'Sl fi~.ttie~ fo'I! Stl\l,h lJ~leo.


v'~ i 3 ~ ~
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

l 7o

63

Sl

551
460
345
58

~

1,041

311
2,388
41

1Jew Yor'.'.:

282

2,311

181

38

360
165

1,043

302

359

70
231
Sl
780

402

144

2,590
~7f6

358

46

901

·•~2~

26

90

2,021

1,199

i:Jebr-:isln
Nevg,d3,
~rev, H."l.irr:)shi re
:Jew Jorsoy
:'Jew 1.iexico

1

173

~

Si:$*~
782

:!iichigm
::innesota
Mi ssi esippi
:Hssouri
:Iontw'.l

1/hshington
·ilcst Virgini 'l
Wisconsin
Wyoming

3,420

J......_ _

18,839
13
25

245

Kentucky
Loui si '111.'.J.
M'1ine
?1:,.ryl md
M'lss:ichaso t ts

Tennessee
Tex3,s
Ut'.lh
Vermont
Virgini'.l

18

f9S

6,264

32

~

SI

Connecticut
Jel '1.vnre
Dist. of Columbi',
Florid'\
Gcorgi'1

4,913

.
,
Ind0-_J_ cndcn t
unit
b_an_!{_s_

~~ ~-

360

269

345
665

36

TABLE

-

St'lte

(Lows 3.Ild invest;nents in millions of doll-'1rs)
Tob.l member bmks Member b'.lll~s that belong Member b-mks th3,t belong Member b::mks that do not
th'.lt bcloi1g to
to ch~ins or 6 roups
to chg,ins or groups
\.11
belong to ch-iins
but opcr.'.ltc no
groups or ch~ins or
member b'.IDks
and
or groups but
no
branches
ouor:1to
br-,.nches
o·oor-,,te
brwchcs
01'.)erato
br3,nches
---- Lows
/
Lo·,ns
Lo-:ms
Loms
LO'.3.rlS
~~umber
'.1Ild inNumber
Number :md inNumber / wd in::md in::md
Numb er
vestments
vestmen ts
investments
vestments
vestments

Il':SD ST1TBS

.\.1 'lb '.1IT13.
."c.·i zon "l.

.. r~'.lnS"¼.S
C't~iforni .,_
Color':\.u.O

J

8,522 35,934
211
119
42
17
125
94
217 2,474
218
123

1,201

306

l+
2
6
19

Co::n ec ti cut
Jdl '1,-,'U'e
:Ji st. of Col.
~J ortdg,
Guor .i -,.

•.:

-

lWM3ER ;\:.TD LO_\NS .urn INVEST:AEliJ'TS OF ALL MEU:i3ER B.'u'IJKS IN EACH STATE,
:urn OF MEMBER B.'\NKS THAT OP h,R\.TE BR.AliCHES OR BELONG TO GROUPS. OR CH.\.INS, :i3Y ST.\.TES, DECEhffi.ER

31, 1929

st. 6526

-

-

.

4-

~nois

1 '.'ln'.l

:!:o·:n
Z3.IlS':\.S

67
20
12
61
115
60

i:;l.µ·
..)
r

234
291
252

so

127
164
245
54
2,575
436
350
203

14
3
17
43
11

22,659

855
13
1
17
26

31
21
33
2,124
23

11

31
6
33
159
23

4

4

l.!.

HS

47
82
120
1,·6

15
29
5
34
25

26
919
39
69
26

11

120
29

15
29
3
34
25

26
919
5
69
26

19

I

I

I

i

i
I

I

!

I

-

-

-

I

3,726

83

-

-

-

-

4

-

-

1

-

( '1,)

15

947
-

-

-

-

-

-

-

-

-

-

-

-

-

-

13,354

13

-

-

-

-

2
6

-

3

263
1
2

1,018

-

II
!

5,579

135
22

-

4

1

-

47
82
12

12

Ind0:9e.11dcn t
unit r;).em'ucr
-. . ,
u'\.lliCS
Number

7,321

13,275

105
11+
77
174
112

180
21
92
350
195

63
13
6
l~2
97

302
33
45
44
69

l.~5

515
229
257
227

23
1,656
397
2&1
177

130
30
49
Bo
120

148
87
127
158
381

200
1l.~2
35

224
66
6s

I

1L:.5

1:en tucky
Louisi'IDa
::'1.ine
1:-..ryl':l.nd
'.'ans-ichus0t ts

55
65
177

:-,iichigm
~'.innesota
Zi ssi ssippi

273
276
38


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

42

323
233
145
322
1,691

15
12

196

57

1'"'•
O•r
1,310

-

1,460
535

73
134
3

1,236
469
9

32

143

132

288

77

6
5

lBO
18

9
5
5

24

2

-

31
17
15
71

g

I

I
I
i
I

I
I

I

3
1

-

-

87
13

3
6
1,-

764

23

-

)

10
21

931

2

181

-

( .,_) Less tl1'\.l1

-

~500,000.

20

-

1

62
166
3
164
J+ 75
162

-

1

LO'U'.lS
o.nd investments

T,IBLE

Str.tte

-

4 -

(Continued)

Tot3.l member b~s Member banks that be long Member b '.mks that belong Member bMks that do not
th'.lt belong to
to ch3.ins or groups
to chains or groups
belong to ch1ins
but oper3. te no
groups or chains
:md
or groups but
oper3,tes br-mches
no_br3.nches
oner3.te branches
o·oer'.1te br<.mches
Loans
Lo'lns
L0'3.:1S
L03.11S
Lows
Humber
:Number
3.nd
inand
inNumber
3.Ild
Number
3.nd inNumoer / and investments
vest111ents
investments
vestments
:vestments All
member b'.3Xlks

!

187

"i ssouri
n t':l..7.3.
:'ieor':l.sk'\
Yev'\d"t
l;ew H~shire

38

856
113

loO

lJO

10
57

18
73

14
21
24
3

137
69
.,~4

-

-

8

-

14
21
22
3

137
69
46

3

-

32
5
55

98
2
170

-

44

44

-

-

-

-

-

-

3rl.L
::e·•: .Jersey
0,
:10,1 }'.exico
29
1~ew York
656
:~ort:1 Cvolin-:i, 72
\Jorth lhkotq,
122

1,525
30
11,005
174
71

69
5
124
6
44

816
2
9,793
57
44

388
294
120
948
14

1,958
331
214
3,705
328

30
55
24
54
7

1,247
97
75
1,700
303

2
55
23
21
1

30
97
74
539
7

-

55
101
104
689
42

98
69
285
361
86

6
34
15
23
10

45
37
162
92
32

1
34
6
28
10

3
37
6
92
32

5
-

99

-

-

46
172

70
391
317
202
430
34

1

1

32

156
171

-

-

11

30

100

-

24
10

219
15

20
10

46
15

Ci'lio
O~u :i~oma

. ,·r,ri

; !3~'1 V'1Jli3.

Rhode Isl'.illd
u u.tb. C".l.rolin-:i,
South D'3.kot3.
Tennessee
Texas

Ub.h

·vermont
tirgini 3.
·:;:;.s:1 inf;ton
:es t Virgini.-t
· ·i sconsin
··.:-yoming
1

1~6

131
172
23


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

-

-

-

-

1

1

-

-

-

-

8

109

15

1,692

3

4
1

-

1
-

1

-

-

2

-

29

-

-

-

8

-

-

-

-

-

609

54
6

7,936
57

25

1,163

128
142

1
29
5

1
983
154

-

5

54

-

69

-

135

-

-

-

4

-

-

42

-

57

3

-

1-56

-

:i.fumber

2

33

Lo3.Ils
and investments

173
67
136
7
57

719
44
136
10
73

295
24
542
66
73

709
28.
1,207
117
27

358
239
96
894
7

711
234
139
2,005
25

49
67
89
·· r

53
32
123

32

1;i

45
161
ll4
131
148
18

69
235
1~6
202
261
19

ool

-

.. 11
1

-

-

~ntl?1Jcndcn t
uni 1 · incmb ...:r
1j'.ln!:s

St. 6526
TABLE 5 - CEAUl OR GROUP B.~TKING AT THE ~iD OF DECEUBER AHD JUNE 1929: SUmma.ry by states and classes of banks, showing number and
loans and investments of banks belonging to chains or groups.
(Fi gures of loans and investments for both Decer.,b e r and June are based largely on June 1929 Bankers Directory, and are in
millions of dollars)

St'.l.te

- -SI' \.TES
-OlTI-Tr.m

12 103 1 8 21

80 2

19
6
55
51
16

13
1
15

I

I

_... Kd.U S s

I

California
Color~do

I

22
6
72
49
16

Connecticut
Jel~.w;xre
of Colu.'nbia
ltl
Flcr :d.'1.
Georgia

I

8

,\.1 aba.n:a.

.\.ri zona

Loans and investments
::urnoer of banks
1
State Member
National
Total
·~ :-.tio l " .:_ State member Nonmember
l=J...::.un..::...e_
De-; .-/June :;)ec. J June Dec--==..::.::.:.;l:;:;.Jun.=;..=...e--11--D-e_c_.-=-.::...;.:l-=--J-un-e--11----De~c~.:...=..::..:::;.l'.=J'-un-e___,1---=De=c"-'.'--=--r--"

_ _ _
Total
Dec. lJuJ1e

29

11
1

-

-

4

51,:.._4--=3:....,c,..::;..3,,,_97'---_ _2_,_,"'-50:;...,:9'--l--=l:.2,-=.8..!..:72=---l=-•!...:6~3-=-2
l .:..,
64.5_ - _ 1.. . .:3: . . .6___1_1_1-+"l_,_,1.:_6:...,:::5~1.!...:,0:.....:.6=5-tt-1'-1_,_,l.:_7:.. ,.7_ _8_,_,3::..;0c_.cO-t--"5'--",.L..90.::...:8:___4_!,.::,
-

9
5
55
19

10
1
10
30
11

-

-

-

5

-

-

-'
-

4
3

3

3

4o

19

22

43
20

9

8

41
84
17
87
8G

t~1
79
10
83
85

11
20

11
19

3
24

2
31
22

16
10
12

4

10

4

10

6

6

5

5

2

45

33

27

19

135
308
21
_,,.

86
261
21
34
32

23

9

2
3

2
1

32
18
50
1,528
30

9
5
43
18
5

-

3

7
18
41
1,476
30

37
1

-

-

~~ana
K a..YJ.S3.S

Kentucky
Louisiana
:"' ine
:;aqlnnd
:<\ssachuse t ts
1lichigan
Minnesota
Jississippi
i ssouri
.,!'.>ntana.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

)b

45

33

132
2

1031

9 I

16

8 :

94
143

26

17

8

55

1
1
1

13
53
63

37
1,212
41
90

37

9

26
52

8

4o

30
10

9

11
293
14
21

61
22
1
1

70

53

8

871

130

762

281

73

225

1,262
65
584
156
15
19
158
20
81
21 I

428

366

21
194

708

348
2

82
174
19
22
24

5

51
22

1

33

12

5
3

68
24

4

35

2

33

25
5

9
190
22
1
l

14
14

4
3

11

2

8

7't

17

663

21

78
30
15

6

2

124

i44

4
4
7

7

2

9

1

4

2

I

1

4

44

1

33

5

46

1

-

120

51
62

-

11
226

-

129
157

30
73

11
225
-

-

134
166

996

1
12
14
4o2

-

8

7

1
12
17
350

-

-

29

1
1
1

-

-

8

21

7
6
15
848
23

-

4

14

I

31
6
22
952
23

4
1

,!'~.

Aiho
inois
~

nonmember
I June
Dec.

I

269
15
157
45

467
g

2

8

26

26

111

41

13

29

111
23

20

11

271

3
21
20

7
3

3

55

43

25
188
115
g
20
12

59
74
g
20

9

6526

St.
~.'\.3LE

5 -

(Conti~ued)

1Jur:1::,..,:;:- of banks
I
Total
r JIT3.ti~;i.Ul Tstate member l~ oru118rr.'u er
/DecJJ~e j:rx:c. I Juna Dec. /June
June ...__
- - - - - - - - - - 1 ~Dec.
- __

-

- -c·1

::orth Carolina
1 or t:':l D::i.ko t::1
Ohio
o::l'lhoma

'"<ishington
"Y\..:st Virginia
·7i sconsin
-yorr.ing


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I

I

I

8

5

102

31

52

45

-

I

100

85

82

36
43

33
48

3

3

2

2

61

54

II
I

I

I

84
26

23
79
27

1

I
I

'ii,

l.Lli
,,-

II
I

-

-

14

18

-

30 ,
I

2
54

45 ;

18
15
1
1
31

16
15
1
1
'24

11
25
6
1

8
21

-

I

I

-

i

-

9

I

I

4
25
5

I
I 32
I

-26

18

56

0

I

I

22
3

60

114,.

Cr go-:i

enncssce
cxas
TJt'.Jh
'/ermon t
•riq~inia

I

-

rcw York

~
.

I

I

!:l:ampshire
.- ..,vr J orst:y
lTe.,., Mexico

:?...::i.:.:~•l vania
E.hoa._, I slMd
f::, l~h Carolin':l.
t:.th D-x.:ot3.

I

68
16

73
13

brc,,ska.
-ev~d.a

-

-

3
1

- I

-

6

i

l
I

i

5
10
1

-

I

I

I

-

3

I

-

-

-

I

!

16 i

.

-

358
3

32

20 I 2,011

1,571

-

-

I

-

I

I

-

3

-

-

-

I

l, 238

-

92
89
50

105
73

62
62

-

-

-

44

36

189

34
22

212
22

-

576

-

3~
7
3
2i{

14i
10
50
1

-

624

-

71
344
7
3
36

15
55
17

-

98
2

-

82
782
153
8
39

21
56
3
4 I 16

10
1

97
2

109
-

82
803
153
8
47

r,I"

oO

-

-

4J+

-

8

89

12
23
1
1
27

-

-

t·

14
9

46

96

13
23
1
1
27

70

-

I

44
31
97

58
103

-

3
·4

396
3

.I
I

27
23

20

36

5

June

62

70
1
30

1

l

20
4

-

14

Dec.

50 ;I
:2 'I
17
3

51
10

Loans and investments
State Momber
National
Dec.
Dec.
I June
I June

Total

30

-

-

54

-

3
374
142

-

2

-

16
12

13
14

76

190
1

184
1

861

149

134

14

14

-

-

-

-

-

-

-

79

154

63

15

205
22

131
15

175
15

-

29

1

29

-

2

6

-2

-

-

-

3
352
142

-

14
3

Nonmember
D1;C. I June

14
3

-

5g

32

28

59
53
32

I

-

21
9

22

-

19
9

.!
I

I
I

3

-

1

-

1
1

-

37
22

-

-

-

-

-

-

-

-

1

-

7

10
86
4
4
9

44
12
18

30
12
13

8

-

I

75

-

86
4
4
9

-

-

-

-

-

20

15

31r

30
6

-

0

-

•

191 1 e er

:'..w3~E 6 - CH_\Il:T OR G::.:i'.OUT A nA 1T THli trD OF DEC::::::,;:s::a
of groups i:.1
each stJ.te, distrib-.:cted acco ~ n r; to size cu1d accord.in!§; to ty1)e of t:;roup.

st. 6526

------~,------,1,---------:-Tu_i_n_o_er--of-·-gr-;~-~-Js------~--H-um_b_e_r_of--~-r-oups
5

Total
number
of
groups*

St3,te

U::H T::iD ST \TES

3

/ 4_r0

I

o:mks bru1l:::s

controlled by I
Holdin <":'
Indi7-10 \11-20
Over 20
~
com:Banl::s
vi dbanl:::s banks
banks
--'-------1~p_an_i_e__s_,__ ___ .,__u__o_i_s__
1·

__2~8~7--~~S_4_~1~2~~7__ 61
l.i,

.Uabama
_'i.rizona
.\r~:::ansas
California
Colorado

1

3
5

Co:1aecticut
::Jela'?Iare
Dist. of Col.
::-1orida
Geor .::,ia.
I d.3110
Illinois
Indiana
Io··ra
K'.lllsas

controllin~

1
-

-

1

3

3
1
1

1

6
5
3

3

3

2

1

2

5

2
l.~
2

3

1
1
1

12

2

19

4

3
2
2

1

5
13

1
12

2

19

2
2

1

-:'ei1nessee
Texas

20
1

1

1
1

9

1

3

l.:.

2

3

1

1

3

1

2

3

34
1

2

10

20

7

8

2

3

6

1

2
2

1

2

2

1

3

7

1

2

1

1
1

10

12

2

4
1

6
6

1

1
1

4

1

2

12

7

l.~

5

1

1

1

1

1

7
7

2
l.~

1

5

1
2

4

2

6

1

1

2
8

1
B

3
3

1

1
1

3

1

1
1

1

14

8
2

3
2

1

1
1

5

).,

2

1

7

5

1
1

4
4

1

5
5

5

V ,cff1110n t

2

10
1

16

Ut'.:ll1

1

1

3
4

2

1
2

2

6

5
4

5

1

10
1

Orebon
?ennsylv:mia
Rhode I sl:mcl
South C3,rolina.
South Dakota

1
1

1

-.rebras~:::a
11Tevada
}Te;-, Hanr:ishire
~Terr Jersey
1J ev, :.'.exi co

Old1.h.oma

3

9

3

Ke u York
:,T orth C3,I"olina
:Torth Da.:!.cota
Ohio

2

3

3

1

2

3

l
1

3

3

15

1
1

1

1

1

2

1

2

3
7

190

1

11

37

44

1

-'iichigan
:.~inneso ta
;{i ssi ssi:Qpi
;:i ssouri
ontana

1
1

1

1

1

5

q

2

1
1

12

KentuclcyLouisiana
: :aine
~!:ar:rland
:(as saGl'rns et ts

1
1
1

26

3

.i irginia

1

12

:·:ashington
.:est Virginia
-:;i sconsin
-'"yoming

,...
0

)

r

1

*Represents number of 6 roups '.1hose headquarters are locuted in the
st'.lte, and not the number opera.ting in the state, 3.s some of the
groups operCtte in sever-:i.l st-:i.tes.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

T.\.BLE

7 - su- ~n.RY

OF

BA a: tlrn:I:TG

T.lJ THE UNI'.i'ED

1Dcc.

I 1929

31

sT.\.TES~ 9- - 1929.

30
1929

30
192s

June

June

st. 5
Feb. 2h Jm1e

I 1924

1927

26
30

Nu:::srn OF L.\tffS

Tot:3.1 . . . .

2~-, 61~5

25,115

322

318

OperatinG branches
By cl~sses of b.:mks:
~rational b.:mks
st~te ban£ members
St:1,te br.mk nonmembers •
:'.UtU:-J.l savings banks
?ri v3,te banks . . .

25,950 *26,973
835
779

23,996
714

145

103
191
387

190
398
62
4

169
186
415
53
7

16l.~

189

387
50

28
( a)

3

By loc'.ltion of branches:
Only in he:::i.d office city
Onl:r outside 11 "
"
Both in .311d outside head office city

517
257
48

518

526

391

252

262

283

l.(3

47

l.(O

By pop1}.b,tion (in 1920) of cities
in -..,:·dch p:1ren t banks ore located:
100, 00'.) or more
50,000 to 100,000
25 , J OO to 50, 000 • • . •
Less tl-i.an 25,000 . . . .

351
81
75
315

359
34
70
305

372
81
66
316

353
65
61
300

l.µ.~g

443
153
130
37
33
17

469
150

4l-!-6

35
41
14

127
124
35
35
12

3,440
2,362
1,078

3,230
2,214
1,016

2,900
1,929
971

By size of branch systems:
1 brl1.nCh • .
2 branches • . .
3-5 branches . • •
o-10 br.:mches
11-30 branches . .
Over 30 branches

150
124
41
l.a
18

126

:rn:csER OF BR\:i.-CHBS

To t':tl • . . • . • • . • •
In head office city
Outside he1.d office city
Location of "outside II brcmches In pl3,ces vri th popul 1.tion of
Less tha:..1 2,500

2,500 - 5,000
5,000 - 10,000
10,000 or over
By classes of ba,1~:s:
:hti onal banks . .
Sb,te bank members
St'.3.te bank nonmembers
:.:utu3,l S'Wings b,:1.11}:s .
Pri v3. te banks . . .
'.iethod of est3,b1ishment:
De :Tovo (as branches)
..•
Independent b.:mks purch:1s ed
md converted into brX11chcs
Not rcJorted
.••....•

3,547
2,432

1,115

612
136
86
281

591
133
84
270

1,027

993

941

1, 2<i8

1, ~220

99

96

'373
36

7

7

10

390
1,560
363
76
11

2,379

2,329

2,214

1,996

1,017
151

958
153

853
163

169

1,299

1,115


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

572
128

79
237

l, 0~f6

*!!l:::i.rch 19 27.
(a}i.Tot sep1.rately tabulated; included v-ri th

2,293
1,503
7G5

11

(not
:::i.vr-dl '1.ble)

2t~g

1,137
903
(a)
( a)

735

st3,te b:J.nk nonmembers.

11

T_\.BLE g - NUMBER OF R1.T1.5 C?F...."t.'..Trm R.'t..\lJCI-iES :urn NUUBER OF BR.\:ICHES
DJ 0?ER.\.I110iJ, JU:.JE 1924 -· DJ~C. 1929, BY ST.:\.TES
St. 6i::i2 6
Number of branches
Uumber of ban'~s operatin~ branches
June
:F'eb.
Dec.
June
Feb.
June
Dec.
June

U:.JITED STATES
Total
N:1.tional
State member
State nonmember
!1futU3.l S8-Vin[;s
Private

31
1929

30
1929

25
1927

822
166
180
4o7
65

818

779

164
190
398
62

145
189
387
50

4

4

8

30
1924
108
191.
387
28
*

31
1929

30
1929

1,027
1,299
1,115

3,440
993
1,298
1,046
96

99
7

7

25
1927

30
1924

2,900 2,293
248
390
1,560 1~137
908
863
76
*
11

State wide branch banking permitted

216

Total
.\rizona
C3.lifornia
Delaware
Dist. of Columbia
~.b ryland
North Carolina
Rhode Islond
South Carolina
Vermont
Virginia

7

53

7

12
30
39
11
11

7

39

215
7
54
7
11
33
42
11
12

226
S
72
5
10
35
4o
11
8

237
6
99
5
11
27
4o
9
9

33

37

31

1,286 1,265
22
22
861
863
12
13
23
24
125
124
77
77
35
35
50
57
10
60
61

1,120
23
762
14
20
113
74
29
25

835
20
538
18
19
88
66
21
20

So

Branches restricted as to location

581
16
10
42
24

Total
Georgia
Kentucky
Louisiana
Maine
Massachusetts
:.1ichigan
Mis sis si l'.l:?i
Nevi Jersey
Uew York
Ohio
Pennsylv:mia
Tennessee

88

62
11
55
106
55
80
32

578
16
9
42
24
86
61
11
53
106
58
31
31

526
21
5
41
24
79
68
11
14
106
53
82
22

447
21
4
34
23
61
63
11
14
77
51
67
21

2,207 2,121
34
39
26
28
108
106
61
63
154
161
l1-33
439
25
25
103
103
682
722
259
268
169
185
67
68

1,726 1,397
53
39
12
13
106
54
133
98
lfOl
332
25
25
21
21
362
517
203
231
131
98
53
55

i~

Br~nch banking prohibited by law**

25
5

Total
Alab'IDla
!U°k'msas
Florida
Indiana
:unnesota
:-Jebrasb
Oregon
7!3.shington
Wisconsin

2

4
•

2
2
l

3

6

No branches in operation:

25
5
2
4
2
2

27
5
2
4
2
2

30
5
2

54
19
3

54
19
3

19
3

1

1

2
l

3
6

4
7

5
7

-9
6

8

3

6

112
1

2

2

1

1

2
1

5
9

5
9

6
9

Colorado, Connecticut, Idaho, Illinois, Iowa, Kansas,
Missouri, Montana, Nevada, ]Jew Mexico, Tex'3.S, Utah
·;7est Virginia

"iJo provision in State law regarding branch banking.
iJo branches in oper.1 .ti0n: "Ne1.1 Hampshire, North D~cota, OJ.r..13.homa, South Dakota,
;'!yoming.

~rot separately tabulated.
*"'Br.'.11,ches reported were established prior to prohibitory legislation •
•

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Federal Reserve Bank of St. Louis

3
1

l

4
3

61
19

7
9 ~~-~

·ria1E 9 -

BX.Ti:.. s O?ER\.TE~ e , rrc

:BT·b-;:ams on DEG'.":.rnER •

- BY sT.\.TEs

1.

6526

St.

N1.1111ber of br.sncb.es
::.ocation
Operated by
--·-r--·- .. OutIn
state
side
head
HonWa- bank
Tobl
State NonTotal 1fao.
H.
office
tional mem- me:nber
tional mem- members
City
city
bers banks
bers
banks

}Jumber of b'illks o-per:1ti:'.1 6
branches
States

U]Il'ED STATES

822

166

180

476

3,547 1,027 1,299 1,221

2,432 1,115

State wide branch bankine permitted
Total
\.rizona
California
Delaware
Di st. of Col.
:fa.r;}'land
:forth Carolina
J.L.1.ode Is land
Sou th Carolina
Ven,ont
irginia

216
7

53

7

37
12
r

23
2
5
2

12
30
39

3
3

11

2

11

3

2
3
4
2

7
39

8

3

0

156
5
36
5
6
25
33
5
6
7
28

1,286
22
853
13
24
124
77
35
57
10
51

526
480
12
8
4
2
8
12

189
12
105
2
24
7
26
2
11

571
10
278
11
12
92
66
7
47
10
38

475
318

811
~

3

24

22
545
10

Ge ..

11
16
g

Branches restricted as to loc~tion
Total
Georgia
ICentucl,cy
Lo'Jisiana
~.':aine
:fassachusetts
1,:ichigan
:i.1i ssi ssippi
New Jersey
~-Jew York
Ohio
Pennsylvania
Tennessee

581
16
10
42
24

121

151

309

2,207

4
4

~

i

~~

88

17

62
11
55
106
55
BO

32

1

6
1

11

16
30

1

13
32
8

16

19
37
20
17

9

35
23
55
21
10
18
37
27
47
23

106
63
161
439
25
103
722
268
185
68

484 1,099

~t8
63
72
1
33
189
19
43
25

624
1

1~

~

35
3
27
309

63
60
71
58
24
31
70
82
104
43

39
463
167
38

1,930
16
25

l.~9,..

6

142
436
1

93
721
235
176
30.-

277

23
3

57 57
19 ✓
3
24
10
1 ......

33

9
38

V

v

Branch banking prohib~ted by law*

6
1

25

Total
_\.laba..-na
.\.r:::3.11 SRS
Indiana
::L1:..1esota
:rebraska
Oregon
·:ias~1ington
·.7i sc on sin

5
2

4
2
2

1

3
6

Ho bra,,7.ches in operation:

1
2

1

11
4

54
19

2

3

2

~

17

11
1

2

5

26
18

27

27
19
3

3
6

2

8

1

6
2

2

2

2

1
1
1

1

1

5
9

2

2

1

3

2

4

3

2

8

1

1

1

3

2

1

Colorado, Connecticut, Florid.a, Idaho, I~J.inois, Iovra
Kansas, :.!i ssouri, 1/.ontana, Nevad..J., /ew :.;exico, Tex:1s,
Uta}1, "lest rirginia

No provision in State 1'1.•:: regarding branch b'.Ulking
Jo branches in operation:

LTOTE:

:i-Jew Hampshire, lTorth Dakota, Oklahoma., South Dakota,
·r1yoming

•"Branches repor tod ·rere established prior to prohibitory legislation.
Of the 2,432 branches located in head-office cities, 537 TTere operated by
n'3.tion1.l banks, 1, 1S3 by state bo.nk members, and 582 by nonmember banks.
Of the 1,115 branches located outside head-office cities, 34o TTere operated
by national b,'.IDks, 136 by st~te bank members, and 639 by nonmember banks.


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Federal Reserve Bank of St. Louis

V

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s.

of Bank Operations file

March 13, 1330

st. 6526

TO:

Federal Rosorve Board

FR01l:

l&r. Smead

SUiiJ:;CT:

3re.nch, Cl1a.in a,1d
Group J3anki.~6

We have no··r completed the tabulation of the data received
from the Federal reserve agents on t}1e above subjGc t as of December
31, 1929, and there is presented hcrevri th a summary of branch, chain
and group banking as of that date, Detailed statistics appear in
accompanying tables, and our records on branch, chain and 6 roup
banking givo further data with respect to individual banks and individual branches.

ExpGricnce with our branch banking record during tho :)ast
throe years loads us to believe that it is substantially complete
and accurate, oven as to nonmember bAnks, In the case of tho chain
and group banking statistics, tho prosont conrpilation is probably
the most com:;?lotc that has thus far beco171e available, but due to
tho difficulty of obtaining infor,i1ation on this subject it is qui to
likel;y that it does not include a few small chains for which no information is available, and it may not include all the aanks in
so~e of tho groups or chains. It is also possible thet the management or controlling interests do not ro 6ard some of ti1e banJ:~s that
are includod in our figures as constituting grou~ or chain systems.
On the wholo, however, tho information as submitted on chain and
group banking is believed to be substantially correct,
Tno material is presented under threo general heads, ~10
first part relates to branch, chain and ::;rou:1 banking taken as a
whole, the second to chain and grou] banl:in~ alone, and the third
to branch banking.
No account is taken in this ,nernorandw;i of iJorri s Plan banJ.::s
or small loan agencies which operate in a Il'Wilber of states.


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Federal Reserve Bank of St. Louis

'
t!arch lb, 1930 .

St .

6526

w.-:r::o:R;,11D:.,M o?J B:RA~TcF, cT~rr A:.\rn GRO'JP BM:ZIN'.J
PREPAR1".D FOB ':'~ INiOR:!iATI0N OF TEE F"SDERAI. RESEFVE BOA...-q_D.

The tPbu; a cion of th"' d,.,ta received fr-;rn the Federal reserve
agents on the a"'Jovc subject as of Decerr.oer 31, 1929, has been com~leted
and there is presented herewitb a Fu ~ ary thereof as of that date.
Exnerience with our ·b:ranch tanl, inr record during the pcLst
three years leads us to ·believe t 11et it is substa1.tiallJ ccm1:'lete and
acs1:rate, even os to nonmember ba :1ks. T.n the case of tiie chc1in a r d
group lanking statistics, tl-:.e -::iresent cor!1T')ilation is probaoly the
most -::o!'-•~ete that has thus far become available, but due to the
di+'fi~ul~y of obtaining- 1nforr11ation on tl-is subject it is quite likely th:1t Lt J.oes not include a few smal 1 chains fo.,..· -w:·:ic, no informat ior i"' available, and it inay not ini::lude all the b'1 r.ks in SOilie of
the grouos or c>.air..s. It is also po~sible th1.t the ,.,e .:~genient or
controllin~ int e rests do not rr>gar-Q some of the banks that are inclucl.ed in our figures as constitutin~ ~rou~ or c~ain s1stE s. On t~e whcle,
however, the infor:11ation as sub1,1i tteJ. on cha.in and groun oanking is
bel i.eved to be substantially c,Jrrect.
The ,1 ate:rial is nresen t 0d nnder three genera.l heads . The
first part relates to branch, cha.in and group banking taken as a
whole, the seco:Ki to chain ana. group banking alone , and. the third
to branch banking.
No account is taJ.cen ir, tLb ..:emor.:·.ndum of l.lorris Plan banz:s
or small loan agenciec which o,·.erate in a number of states.


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Federal Reserve Bank of St. Louis

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f

1

General _Sum..r.r.:_y. Accordi..g to statistics just co.rr1,iled, foere
were in Ol_)eratio11 i.1 the Unitei States at ti1e end of 1929 , 24 , 645*
-Danks and 3, 5~7 lranci es, or a total of 28 , 192 banking of....ices . Of
this total of a::;:pr·0x:i.r,12tely 28 , 200 banking offices , tr.ere 1vere 6 , 353
bax1ks and branches that belongecl to branch ban2.c sys t~ms , to c:1ain or
group bank s;1,rsterns , or to both . Tl.is lec._ves 21 , 839 banking institution s
tba t might b e def ini to ly termed es II inde,~)cnden t uni t banks" - - havin,:
no branches and being in no wa;,r connsct0d with other banks throUnh chain
or group affiliation .
As a mea.sure of the bankin 6 resources of the banKs fallin~ into
the different categories , we have te'uuL:ited th8 ficw·rs of total Joa11s
and investme,1ts . On this basis it a:)pears that at the ey,d of 1929 all
banks in the country !1ad total loans antl Lwestments of approximatel 3r
$58 , 500 , ooc , ooo* . On thd samG date the oranch , chain and .;1·ou:.9 'ua:rJ::ing
systems , embracin 6 a total of 6 , 353 ba1~::s anQ branches , had total loans
and investments of aJ0r oximately $30 , 000 , 000 , 000 . I n other words , the
bankine resources of the branch , group and chair systems were more tr.an
one-half the total of all b3.nks in the c 01-.u1 try .
The b ranch b ari:.cing systems at the end of 1929 , ta1cen a l one ,
embraced 822 banks and 3 , 547 branches with aggregate loans and investments of s25,lOO , OOC , OGO , but these fig 1.ires incluue 119 banks with 1, 415
b ranchGs and loans and investm,nts of $6 , 300 , 000 , 000 that were also reported as belon 6 ing to ba:rlc grou:)S or c~1aias , There •,ere 287 ch2in or
group bank sy~tems report~d- in existence~a t the end of
em?racing
2 , 103 banks w1 th loans ana 11cvost..1-.:nts o- $11,200 , 000 , / ~cs.., fi uns ,
6
like those giv,m for tll0 brqncll s~_rste;.s, incluJ.e a, certain amount of
duulication , that is to say , they inclv_de 119 baTLrn with 1,415 brn.nches
and loans and investmonts of $J , 300 , 000,0CO , whi.::rt "1ere rc-:?orted as
tclonging to chain or grou-9 S?ste1.1s . Tnis duplication is , ho ·mvor ,
eliminat,_,d fror.1 the combir:0d statistics ._;ivcn in th0 tvJO _.?r0codin
6
yaragraphs .

0~~9,

1

The tabl0 on the.. follov,in 6 ::_)age s'1o•·•s the numJ.Jr and. loans end
investments of branch , chain and brou:p 02nannJ SJSLJms 3.t the end of
1929 , in com.:_)arison r,i th figur0s for 211 banks in t11c c :run tr:' .

*Excluding 9rivat"' ban!-::s not undor state su~?0rvis1on , For tt"O
statcs tho Docor.1ber fi ur0s for state b2nrs 9.r0 not availaolu ,
and in thvSv cases thG 13.test availn.ole abstract W':.S USG 1.


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Federal Reserve Bank of St. Louis

0

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'

2

IMBER .AND LO.Ars A:JD I3V:::s7..::u;rs 8F .ALI. }3_.:W,'\JKS r; T:IE UNI ED ST.~'1'1:S
Al-JD OF BRtNCH, CH.Arn A. D GROUP :aYCTC SYS'IR/.iS AT 'IliE E!rn OF 1929

Nunber of
banks ( or
branches)
All banks (head offices) in United States**·
. . • . . . .. • . .
Branches . .
Total -- all banking offices •
Banks that belong to chains or grou~s but
. . •••.
operate no branches.

.. .

21},

61+5
"3,547

Independent u.~it banks (banks that ao not
belong to chains or groups and do not operate
branches) • • . • • . . • . • . . . .

(a)
(n)

28,192

$58,461,000,000

1,984

4,913,000,000

Banks that belonG to chains or grouJs and
operate branches:
Head offices (parent banl~s)
Lranches . . . . . .
Ban:.~s that do not belong to chains or 6 roups
but operate branches:
Head offices (parent barL~s) • . •
Branches . .

Loans
and
investments

*6,264,000,000
(a)

703
2,132

*18,839,000,000

21,839

28,445,000,000

(a)

*Includes branches, separate fi 6"UI'es not being available.
**Exclusive of ~rivate banks not under state supervision. For two states
the December fi~'Ures were not available for state banks, and the
latest available figures were therefore used.
(a) Separate figures not available.
Branch, Chain and Group Bankir.g Areas . T·,J::on generally and looking at
the situation from the standpoint of the number of 'banks involved, chain
and group banking exists on the widest scale in those states in which branch
banking is prohibited entirely, for e:xami,?le, in :.1inncsota, North Dakota,
Kansas, Iowa , Illinois, Oklahoma and Texas. It has, however, grown to considerable proportions in so-called restricted branch bankint1 states -where branchus r.iay bo established only in the head offico city, notably
Michigan and New York. Fro;n the standpoint of banking resources controlled
by the members of the groups and chains, chain and group bankinb is also
found on an extensive scale in certain additional states, including particularly California, Florida, Georgia and r.{on tana.
As is gen3rally kno~n, chain and group banking has had i~most rapid
development in recent mont1J.s in the northwestern s ta tcs, but considerable
activity has been reported in so,ne of the eastern and southern states.
There are relativel~r few states where it does not exist to a substantial
extent, but the predominant chain or group banking area r:iay be said


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Federal Reserve Bank of St. Louis

-

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3

to comprise the middle western, western and central states. There seem
to be at present very few legal restrictions on the formation of bank
groups or chains, and the continued growth of this system, which might be
termed indirect branch banking, is thus possible generally throughout the
country.
~ne growth of branch bankin 6 , on the other hand, has been restricted
by law in many states, and the branch ba.nkin 6 area has not c:i1an 6 ed materially in recent.years. State-wide branch banking has, of course, had its
greatest development in California, but it has also developed to a considerable extent in Maryland, Nor th Carolina, Rhode Island, South Carolina
and Virginia. The other states embraced in the principal branch banking
areas are those in which the establishment of branches is restricted as to
location, including New York, Michigan, Ohio, Pennsylvania, Louisiana,
New Jersey and Massachusetts. The branch banking area is, therefore, much
less extensive than that in which chains or groups operate. It includes
most of the eastern states, and Michigan, Louisiana and California, but
very little of the central and middle western sections of the country.
Member Banks of Federal Reserve System. The branch, chain and group
banking systems, which in the aggregate had approximately $30,000,000,000
of loans and investments at the end of 1929, included 923 national banks
with loans and investments of $11,800,000,000 and 278 state bank members
of the Fed.e ral Reserve System with loans and investments of $10,800,000,000,
or a total cf 1,201 member banks with aggregate loans and investments of
$22,700,000,000. These banks therefore controlled approximately 63 per
cent of the banking resources (as measured by loans and investments) of
all member banks of the Federal Reserve System.
In some states the member banks that operate branch systems or
belong to chains or groups control the greater part of the banking resources of all of the member banks in the state, as is brought out in
table No. 4 submitted herewith. It will be noted from this table that in
the following states the loans and investments of member banks that operate
branch systems or belong to chains or groups constitute more than one-half
of the loans and investments of all member banks in the state:
California
Delaware
Didrict of Columbia
Florida
Georgia
Kentucky
Louisiana


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Federal Reserve Bank of St. Louis

Iiaryland
Massachusetts
Uichigan
Minnesota
Montana
New Jersey
New York

North Dakota
Ohio
Rhode Island
South Dakota
Tennessee
Washington

- 4
Ta"'ules. For reference __mr·oses, t_.e follo·rin" ' t,90les rel-=-tin.;
to branc,1, chain anC:.. rou.:•? :Ja~::in__, are att-:tched:
S:a:Jle 1 - Number 1.nd loans and. investDen ts of r..11 banks and
branches in the United. States E-nd of oranch, chain
and. J;rou::_:i b"'.IL.dng s~rste,1s, Dece;.1ber 31, 1929, !?2
clp sses of oan!.:s.
2 - ITumoer of oan:s :-nc 'Jraaches and nu.aber of branch,
c~12in and ._,;rou, oarikin~ s~rste,ns, oy states,
Dece._1-...,er 31, 1923.
1

)

3 - Loans and invest..1en ts o.f a.11 ba.n~rn and of branch,
chein and. _;rOU.J o ;,nk: inb s3rste..1s, bv states,
Dece.1...,er 31, 1929.

4-

Number a.nd loans -"'Il(: invest .. 1ents of all member
banks in eech stc'te rnd of u1e;.1oer b.:mks that
o:)erate branches or "Jelou~ to ~,rou_:?s or chains,
Decer.iber 31, 1923.

I.:ore d.etailed infor.i1at ion 0!1 chcin a.nC::. .,ro uJ b[nkin_" anC: on
branc~1 brn~:in6 is given in the se·~=u.te sections rebtin 0 to these
subjects.


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Federal Reserve Bank of St. Louis

--

·--

5

CR.ti.IN .AN.:) G30t,'P J3_ti',TIHG

Definition. When the Federal reserve agents were requeste ,i to fur11
nish the Board 7ti th reports on chain and group banki ng , t!le term chain
and group banking" was defined as con~prising those systems "in which any
person, gro~ of persons, :9artnership, association or corporation has
actual or potential control over the operations or policies of three or
more banking uni ts, each workin 6 on its J\'ffi ca.Qi tal and under its own
personnel. 11 It is on this basis foat the statistics submitted herewith
have been prepared. It should be realized, of course, that under an;,r definition of the term, many difficulties present themselves in endeavoring
to make a comprehensive survey of the subject, particul-3.rly where nonmember banks are involved. The sources of the information obtained -oy
the Federal reserve agents include examination reports of member °Janks,
national bank examiners , state 0,.rnking departments, the man2,goment or controlling interest of some of the ;rou::.:is , arid in some instances press
reports or similar information.
No attempt has been made in the present tabulation to distinguish
between 11 chain banking 11 ;:md 11 group bariki~e, 11 but it is of interest in
this connection to note that t;1e Comptroller of the Currenc:r, in a statement made before the House Eankin 6 and Currency Committee on February 25,
made a distinction between the two terms as follows:
T'ne term 1 chain ban....1cing I has been in use for many years in
this country to describe a condition in which a nunber of banks
were owned or con trolled by the same individual or by a group
of individuals. These so-called chains were situated very
largely in the rural districts and the member banks of the chain
were principally small country banl:s. This condition was and
still is quite prevalent in the agricultural regions of the West
and South. Many of these chains have come to disaster through
the failure of all of the banks which constituted them. During
the many years this type of bank ovmership has been in existence
it was not considered as a trend toward a fundamental change in
our banking system nor did it relate itself to the auos tion of
branch banking. On account of the failures of several of these
chains the term 1chain banking' began to carry ~ith it an
element of disfavor.
"The tenn 'group banking I is of very recent origin and is
being used to describe what appears to be a major movem0nt in
our banking system. The }:)rincipal factor in group banking is
that each group is centered around a city or metropolitan bank
through means of a holding company which ovms the majority of
the stock of each bank thereby creating a system of banks more
or less integrated in management with the central bank of the
group. Its one common factor with the older type of chain banking is that several coun tr:, bam..s IT'k"Y be a.med by a single
agency. In this discussion, therefore, I shall use tho term
'group banking' to mean the ownership and soLle element of operating
control of several banks throu6h the mcdiuin of a bank holding
company . 11
11


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Federal Reserve Bank of St. Louis

- 6SumTTJery for the United Stc1t8s .As he.s o.lrredy b, , n notP'l, som"' of
th~ b"nks thr-t belong to chc'.ins or · 5 roups ~lso op"r::tt~ br?nC'F'S, in f~ct
the h·o l=re,';"St brrnch syst"ms -- th,., B,:-,nk of It~ly ~atiom1.l Trust &
Savi11gs .Associr-tion, Sen Fr"Pcisco, Pnd thP Ben~<" of A.rri .~rica of CE'lifornia,
Los Ang"l'"'s, 11i th e totP.l of 447 brnncht)S, ,rf' includr-d in th Trc>nsa.'IIPric;:, Corpor.<ition group of N"lw York. If :-,11 ch?in end roup bPnlcs
c>.rr irclud "'d , irh'-' thrr or not they 0"'9~r-.t~ br::1.nch s, th"' s tPtistics show
thnt o.t the end of 1929 th"'!r" w~r.-. 26 7 bank chai '1S r-nd grOU"'9S in the
Unit ;;d Stet c,s l"rr.brncinf; 2,103 ban}::s, as comparnd n. tp 275 chains and
groups Pmbr~cing 1,821 b~n..ks at th~ ~nd of June. Th~ 2,103 benks rP.pcrt...,d as b~longing to b<~c chcins or groups ~t th~ 0 .d of last yrer
constitutnd about onP-tr.0lfth of th'"' b,n~s inC08~ country, ~hile th,ir
loans and inv 0 stm"nts -,:,r>r 0 about $11,200,000,/or nearly onl'!-fifth of th~
a.gp-regate loans and inv,.,stments of all ban:rn in the United Stat0s.
0

Sumrrary by Clesses cf Banks. 1Taticn~l bor. 1rn r~p'"'rt~d ,:,.s mprrb rs
cf brnking chcdns e --:.d JOUDS numbered 602 at the end of December as compared with b45 in June, state bank members 136 comuared with 111 in June,
and nonmember banTs l,lb5 compared with l,Oo5 in June. Loans and investments of the natic-nal ban'.cs belonging to the ban..1-rin,_~ chains and grouus
wer~ apuroximatP,ly ~5,900,000,000 or over one-fourth of the total for
all national ban~s, while loans and investrr:onta of st?te bank Members
belongirig to the groups aggregated $3,400,000,000, and of n'lnmember ban:.<S
$1,j00,000,000.
0

The follo~ing table gives a surrnnary comparison for the country e.s a
whole, by cl·\sses of bon·rn, for June and Decerrber 1929:

HUP.1b 2r of ber.'c:s
Loens nnd invpstmP.nts
Members
lof members
Total of groups Of 811 !of {'Toups
and. chairs b ."n'k°s
c1nd chrins **
(In millions cf dollars)
All classPs of b,r.'cs
December*
June
1 ational be.nks
December
June
State bank membprs
December
June
Nonrr.ernber ban1rn
December
June
nJMB.:R OF GROUPS ~'D

December
June

24,645
25,110

2,103
1,821

58,461
53,47l..L

11,177
0,300

7,403
7,530

802
b45

21,5c.4
21,457

5,908
4,159

1,119
1,177

136
111

14,350
14,254

3,397
2,509

16,123
16,403

l,lb5
1,065

22,527
22,763

1,372
1,632

c-.:.AL:S:
237
275

es for state ban~rn are net ~vailP~]e
*For 2 states tbe Decom:Jer fi
and the lat 0 st available abstracts w re usPd in these casos.
**Based largely on condition fitures publis~ed ir. J·ly 1929,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0

(St, 6520

- 7
Princi.nal C~:aL1 and Grou,, 3<!!'"-kir g Sb, tc_§_. Chain o.nd group be"'.king
has rcaCil8d its groatost c.cv'---lo:::i.ner.1 in thJ no~·th;-:estorn sta.tJs, but it
embraces a considerE,,blo ~1um':)or of ba:iks and. a relatively largJ proportion
of the banking reso1ucos in ma-1Y othJr states. There were, as a rr.atter
of fact, 25 st:3.tes cct the emf of 1929 in v;1.1ich c~1'lin and grou:? b,1.nks consti tutGd a su1:Jsta.'1 ti:i,l ::;:nrt of tho nur.1bor of banks or of the 'uankin,;
resources, as indice.tod in the follo ving table:

State

NTui1bor of bo.!"ks
?~;cm:) Gr s of
Total
grou;?S e.nc.
chains

-

Lo,ns anc. i_!;_Y 1 ~. tm'-- n t s
Of -ncm J0rs of
Of all
groq)s a:1d
1.:-e.n}::s
chains*
(In mi.11 ions 0: d.olL~rs)
1

Minnosota
MichieQll
North Dakok
Now York
Kans'ls

1,046
743
412
1,127
1,063

308
1_35
114
102
,.,,-,

901
2,021
112
17,222
4o4

584
1,262
58
2,011
46

Iov,a
Illinois
Oklahoma
Texas
Washington

1,257
1,765
617
1,308
340

87
84
85

90
1,212
103
1o4

75

7i2
3,802
401
1,036
460

73
61
60
33
72

359
137
2,338
917
198

62
47
396
212
50

4,

Nebraska
South Dakotn
New J 0rsoy
Wisconsin
,Arkrnsas

S04
337
JrOoo

q6o
415

00

s4

California
Massachusetts
Mont<ina
Pennsylvania
Florid.a

437
450
195
1,560
235

49
45
45

4o

3,420
,, 22r::~
144
5, 703
") r:: ,.,

I d..""1.hO
Or egon
Missouri
Utah
Georgia

137
234
1,277
1o4
405

41
36
30
26
22

260
1,199
162
334

All other states

6, 787

229
2, 103

11, 535
*"'50 ,461

To tal

8

'-J6

ol

I

139

1,528
871
81
303
134
37

32

158
50
166
841
11,177
1929 .

"':Based l::trgel:r on condition fif;1.u·cs puolished in Jul:,
**For 2 states thJ Docorabc:::- fi.._'ur0s for s t-->tc bcnks 2ro not •rot
availnblG and th3 l:itcst avo.ilc,blJ .:'l.~)strncts ·vorc used in° those cr:ses .


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Federal Reserve Bank of St. Louis

... 8
Recent Develrnm ents. The first s 1.u·vey of d ain banking made by the
Federal reserve agents for the Federru Reservz Board v,as in Decemcer 1922,
the second in June 1926, the third in June 1928, and the last complete
survey in June 1929. Since that time monthly st·w::ileme nts on changes in
chain and group banking 1'.ave been submitted to the Board by t'1e Federal
'.1.~'le data submitted l1rior to June 1929, however, are not
reserve agents
sufficien tly comr,_:,l0te to ma.lee it possible to compare the present situation
with that which existed in earlier years, in fact even the figures as repcrt.ed six months ago have since had to be revised considera bly. It is
dming the last six .nonths, however, that group banking has been exJ_Janding so rapidly.
0

Increases in the number of banl~s belonging to chains and groups
since June are confin3d largely to 9 states, and most of tho gro--,th is
tho result of the ra::;iid expansion of a relativel y small nu;:iber of groups,
notably the Northwest Eancorpo ration of }ilnneapo lis nbich increased from
20 banks in Juno to 92 in December, the First Bank Stock Corporati on of
Minneapo lis fron 12 to 73, and the Guardian Detroit-U nion Group cf Detroit
which was not in existence in Jun0 but comprised 3 5 banks in Decer..bcr.
Tho number of chain and group bcn.;:s at the end of Ju.>1c and Dcccin;:ier in
each of the 9 states in which tL3 principal increases occurred was as
follows:
Number of group or
chain banJ;:s
Increase
1cer:-:ber
D
to
D;,ce;-'!ber
June
June
Minnesota
Michigan
North Dakota
New York
Washingto n
Arkansas
Montana
Massachu setts
Kentucky
Total

47
49
14
21
16
"'17
13
12
12

308
135
114
102
75
72
45
45
16

261
86
100
81
59
55
32
3~

201

912

711

1
*Some of this increase may represent simply ban ~s that 1•:3re not lmown
to be or were not previousl y ,repor tcd as belongiY.g to chains and groups .

Prir.cipal Chains and Groups. !tecent months have witnessed the rapid
rise of quite a number of ban 1-c groups of ti1e type referred to by tne Comptroller in his recent stateme.:1t before the Corm1i ttee on :Banking and Currency. This type of bank 6 rot1:9 is 6 eneran;r centered around a cit:, or
metropol itan bank througc"l means of a holcli"lb company which oms the majority
of the stock of each bank. Exam;)les of these newly fonned grou2s, which
are the ones in which the grea:est interest conters at :;resent, c1.re the
Northwest Bancorpo ration and t: e First 3an - Stoc.r.· Coq>o1·.:i.tion of ·.li::mecpolis, the Guardian Detroit Union Group of 1;etroit, fae ?irst lhtio.alPeoples Wayne County Group of Detroit , thcl i.:;;~rinc .(ial nd Corporn.ti on of
:Buffalo, and the First Wisconsin National J3cn2: group of ;.(ilwauk,e . Some

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Federal Reserve Bank of St. Louis

St.6526

'--'

- 9
r.,f these groups have expanded their fields of operations be:.rond state

lines and in one case beyond FGcleral reserve district lines. ~e chain
systems which have b0en in 0xistencc for :·Jars, in most of which the
control is held by one or moro individuals and v1hich genorall? aro composed of baw::s in the rural corn.aunities, do not appear to have grovm
materiall~r in recent :nonths.
The p rincipa.l groups and chains, with the number and loans c:.nd investments of banks included therein, are as follows:

Nat:10 a.ncl address of .ranagemon t or
controlling interest

Nwnber of
barks in
group or
chain in
December

Loans and
invest1,1ents*

PR me I?AL GROUPS

Northwest Bancorporation
First Bank Stock Corp.
Guardian Detroit-Union Group
First Sccurit~r Corp.
Old National Corporction
First National-Peoples
Wayne Cciunty Group
Southwest Corporation
First National-Old Colony CoJ:?.
Marine Midland Corporation
Transamerica Corporation
First Wisconsin National 3a.n~r
Angl..,-National Corporation
First Securities Corp.
First National .Ban~::

l1inncapoli s, Minn.
Detroit, 1.~ich.
Ogden, Utah
Spokane, Wash.

92
78
35
25
22

$339, 754 ,ooo
439,267,000
03, 996,000
34,723,000
32,981,000

Dotroi t, Mich.
Tulsa, Okla.
:Boston, :•1.as s.
:Buffalo, N.Y.
1Jew York, N. Y.
:t.i 1 wau...1:cee, Wis.
San Francisco,Cal.
S~rracuse, N. Y.
Atlanta, Ga.

21
21
20
19
18
18
17
14
7

705, 032,000
77 , 753 ,000
568 ,312,000
423 ,436,000
1,418,361,000
168,466,ooo
146,138,000
115,559,000
104,954,000

Nashville, Tenn.
St. Paul, Minn.
c;1icago, Ill.
Sioux City, Ia.
:Bad Axe, Mich.
Oklahoma Ci t~r, Okla.
Reno, Nev.

66
71
14
17
16
15
12

131,308,000
52,932,000
270,719,000
13,056,000
5,612,000
4 , 664 , 000
18,911,000

11

PRINCIPAL CHArns
Rogers Caldwell**
Otto :Bremer
Foreman Family
James F. Toy
A. E. Sleeper
Thurmond Brothers
Geo. Wingfield

*Based largely on condition figures published in July 1929.
**Includes 38 banl:s formerly reported in A. B. ]eIL::s chain of Arkansas.


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Federal Reserve Bank of St. Louis

10

Size of :Bcmking Chains or 3-roups. In order to have t:1e :Boc:-rl's
record of chain and group bclil'rn include a 11 banking ins ti tuticns t.nr t
might reasonably be class ifiea. as cons ti tu ting groups or chair.s, foe
Federal reserve agents were requested to include groups comprising as
few as throe bonks. A.s shown in table 6 submitted herewith, there were
at the end of 1929 only nine chains or grou:)s that co ,::-l)rised more than
20 banks, and onl:, 26 additional groups that included from 11 to 20
banks. Folloi:-:ing is a distribution, according to tho number of DD.nks
included in the groups, of the 287 bank chains and ~roups re:ported
at the end of 1929:
Number of grou~s with --

3 .jank.S
4-6 banks

64
127

7-10 bc..nks
11-20 banks
21-30 banks
More than 30 banks

61

Total

287

26

4
5

Type of Chains or Groups. W'nile it is difficult in many instances
to ebt?in definite information as to the de 6 roe nnd method of actual or
potenti2l control exercised. by tne ::1c:,,nagem0nt or controlling inter st of
the chains er grou,s, three rather distinct types have been re~orted as
follows:

1.

Control by a holding corJoration which in the first instance
is generally formed o;r interests connocted with one or 1nore
of the principal barL:s belongin 5 to the ch~in.

2.

Control held or exercised by the ::irincipal b2nk in the __,roup,
either through direct ownership Qf stock b;' such princi::;i2l
bank or through ownership bir the s tockholdors or dir0c tors of
such principal ban..k.

3.

Ownership of substantif'..l or controlling int.3rest in a number
of bnn_-:s by a single individnn.l, fc"mily, or group of indivi<iuals.

At the end of 1929 there were 53 groups of the first type, 44 of the
second an~ 190 of the third, but this classification according to type of
ccnf,rol is general cnly, because the relationship between the oanks is
such a.s to make it i:tpossi ble in so;ne cases to ioake a definite classification. In one case, for example, a trust com:?an;y whose stocl:: is entirely
trusteed for the benefit of the stocldlolders of a national ban~-: has
organized an associate comna.ny, and the latter in turn owns a majority of
the stock of a number of national and state banks. Fnrtherr.aore, the
method of control is so:retirnes changed to :.ieet the nee.ls of the occasion,
but regardless of how c~ntrol is exercised it seems to ~e quite evident
that in most of the recently for;ned groups t:1ere is one p3.rticular metropolitan bank that exercises the domiTJEting influence over the other ~anks
in the ,;rou:p.


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Federal Reserve Bank of St. Louis

11
Examples of benk s or g rou_?s t~1: tL 11 i n to eacl1 of the three classes
abova mentioned, on the basis of th-:J i ~uorril;ltion r e:_)ortod at th0 end of
1929, follow:

Name c.nd address of :nana gewnt or
controllinJ interest

1':umber of
b:ml:::s in
6 roup or
ch2in in
D0ccm0er

Loans and
investments*
( In thousands)

Type 1 - Control by holding cor;)oration
Northwest funcorporation
Minncapol is, Minn.
II
First :Bank Stock Cor_p.
New York, N.Y.
Transamerica Corp.
Guardian-Detroit Union Group
Detroit, Mich.
II
First Hat.-Peo:ples Wayne Group
Uarine-Midlanc. Corp.
:Buffalo, N.Y.
First Nat.-Old Colony Corp.
Boston, Mass.
Southwest Corporation
Tulsa, Okla.
First Security Corp.
Ogden, Utah
Old National Corp.
Spokane, Wash.
Type 2 - Control by 1Jrincipal bank
America.n national Bank
First National Bank
Peoples Pittsburgh Trust Co.
Hartford Conn. Tr. Co.
First National Bank
Peoples Trust & Gu,3_rantee Co.
Fletcher Savings & Trust Co.
First national 3ank
First National nan..~
Union Trust Co.
TIJpe

lfashville, Tenn.
Chicago, Ill.
Pittsburgh, Pa.
Hartford, Conn.
Tampa, Fla.
Hackensack,N.J.
Indianapolis, Ind.
Dothan, Ala.
Atlanta, G2.
Pittsburgh, Pa.

3 - Control by indiv idU8,l or 6 rou-J of individuals

Otto Bremer
RGgers Caldwell
James F. Toy
A. E. Sleeper
Thurmond Brothers
Fo;_'eman Family
Geo. Wingfield
O. S. Hanson

Minneapolis, liinn .
Nashville, '.renn
Sioux City, Ia.
:i3ad .Axe, Mich.
Oklahoma Cit:·, Okla.
Chicago, Ill.
Reno, Nev.
Grand .Forks, N. D.

92
78
18
35
21
19
20
21
25
22

339,754
339,267
1,418,361
403,996
705,032
425,436
568,312
77, 753
34,723
32,981

15

35,470
512,669
167,130
37,186
21,682
25,427
23,926
8,686
104,954
l.[58,901

7
7
7
8

9
7
8

7

6
71
66
17
16
15
14
12
14

*Based largely on :::ondi tion figures ~)ublished in Jul:r


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Federal Reserve Bank of St. Louis

52,932
131,308
13,056
5,612
4,664
270,719
13,911

3,303
1929.

- 12 -

Investr ent rr.)2-s'cs Soe:::iaUzi n2' ir. BaYJ.' St0c··s . TilP 9resPnt s·o.rVP.Y does not inch.. d.e an; insk.nces ···:··p:•e A s;ibstanti2l a'Tlotrnt of bank
stoc'~ is o--·ne'i by en investm~:1t trust p11r--=;ly as an investrnent - vi thout
any contra 1. S1:ch casqs, tl"rocgh thA acq:.1.i si ti on of acdi tional stoc1r,
may of course PiVA ris 0 to act1,..al coLtrol over a group of ban'..rn in the
co-c:rse o: time. ::'h 01·e ;_s or.e s rou9 included i:ri tr<?. 9r,Jsont com.)il~"tion
th2t is n"'r:·.aos o: t':is sort -- that of' t1.1fl Gol0rnen Sacrs rraoing Corporahon of tTn· Yor 1,;- v·hich at the end of 1•123 ~-as report,,d as substenti..ally cortrolling 3 ban',s in }Te·v Yor1.c, 1 j n Ce.liforr:ia, and 1 in
P-::nnsybn·n ia. , ""i th ag[TA[ate l oans a-rd inv~strr1Pnts of ~Slb,1)')0,0,...,0.
Suoridiarv Inv8£trr<mt anr. Finance Co'11 J?niPs bolon_ in,"' l_Q_Q_ou-::is_
.QL_Ch,-inr . rir ste.t:.stics th,·t "rA horr> ures"'nt-"a /.IS to b,rn'~s trat bolcr,g to c:·ai:ris or g-rouus do r.ot includ" inv,,strr-:1 nt ben'dnl". hons"£, joint
stoc1: 1~na 02n rs, trust comnpni s =)~1/!egr-d solely in trust ounretions,
and so-cPll d. COITJ.'Tl"'rcial cr c.-di t or finarc -~ com-pani"s . The, F"dc,r~•l r0s0rv~ ego~ts 7nrq not r nqu"s t~a to list such inv,st~~nt or fin2YJ.cr institutions in r "9ortir:g on ch,.,ins end R"rouos, but in m2ny ces0s so:n0
in~orl"'Dtion ?long this lin'l T'lS f1.A.r---iish:-od. i;;~c·min"tion of t:hr- r•"-oorts
i-r1dic, t 0 s t}:r,t th-. incL1sion of suc1'l institutions in til - grouD is not
et E'll '.lllcor,mon, in fret t~1° ir.dicr-tio:1s · r thct - t 1---rst sor," of thi:-,
grou"?s h."'d d"finit"lf in mind th" orf&nizrtion of such s~bsidi!"-ry inV"st.,,--sr.t r---id fir,::,nc" comprni.0s ['·S "/Oc1.ld 'Tl,"'r,-, it DOSSibl" for th"m to
f'nfr.g,; in r.11 forms of finrnci: 1 op'"'r,·tions --- not only comm 'rciPl b['nkint:, S"vings b--n;c r·nd trust oo'lr·• tions, but r'lso in th,., unc'l,"r-:riting
E'nd flot· tion of S-"Curi ty issu"S, furnishing of short-ti"TI" comm"rcirl
cr"dit for finr.r cing such ourch"S"S ['_S cutori~ooil~s "I'.d hous 0 hold goods,
"t C •
0

0

1

.A:r. ..,x,..,mpl:· of such r-ffili· tio!1s pr-, c " rt-, in subsid.iPri"'s of thr
·r r;ins."m:,ricr' CoroorPtio :, , sho.,,·n in th -. 11 .P.rn,..,ric:-n B0,,Jrnr 11 of "'.i'"bru.t1ry 20 .
This group, in nddi tion to co ·1 trollir.g or-· b..,n,._ in }Jrw York cird s;,vr.nt"'"n
in CnliforniA with aggr0grteo lor~s :,:-id irv"stm"nts of ov"r $1,U00,00),'.)00
f'");)1)"Q.rs to nPV'l cor-trol ov"r th follo·~·i:.g i iost itutions:


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Federal Reserve Bank of St. Louis

r,.-,tionrl :S-·n:d t."ly Co•r!-p· ·r.y
Arfl''Ti t{ l \c-1. Cvrpor~ ti OJ.1
Bi:'nC.? d 1A-·-,-.. riC-".. (-' ci 1 It• lip, Filnr, It"ly
]:-,nc.:wpri Cc'-Bl ,.,_ir Cor-ocr- t ior.
Coruor"tion of _4._rr--.ricr
Prcific :;·,-,tion"l Fir0 Ir..surnnc0 Corn-onny
3.:1n1:itrl.7 '/ort,e-, g_0 Col1'10<''1Y
11
Cor. pn:w of Am "r i er
11
APTicultur·-1 cr..--di t Co.-ropny
Cr-liforr..i.? Joi·.- t Stoc1c L:--r..d B~ nlr

(St .

••

13

instance is the Gua :cdian Dctroi t Union Group, which
controlli n 6 35 bn.n 1:s :ritn loc1I1s and. iiwestu18n ts o[
to
in addition
$400,000, 000 was reported as controlli ng th0 followin[, financial
institutio ns:
.t.no thcr

1

Guardian D,3tro it Cow ·,any
Guardian Detroit Co. of Calif.
Guardian Safe De~osit Co.
Xean Higbie Company
Union Com_)any
Union Titlo & Guaranty Co.
lfa tional Union Com9any
Peoples 1fationd Com~)any
Now Union Bldg. Com-Jany
Guardian Holding Com:;)any
Ohio-Penn a Joint Stock Land Bank
Union Joint Stoel: Lanci.. Be.nk

Detroit
II
II

11
II
II

Jacl:son
II

Detroit
II

Cleveland
Dctroi t

Suspensio n or Failure of C:hain and Group Banks. .,\ co,1pariso n
was recently made of tho Eoarci..'s r0cord of all b2..nks suspended during the ::cicrio d 1921-1929 iri th lists of be.nk chains and 6roups submi ttod as of Dcce.11"'ucr 1922, June 1926, Juno 1928, and June 1929 nnd
monthl:r sup:Jlemen ts since June 1929. Duo to tho difficuit y of
obtainin 0 definit0 infonnati on oa chain or group b2nldng, particula rly
for t110 02rlior years, such a com;::iarison maJ' not show all of thJ susp0ndcd b.s.1::.::s that v0ro :ncmb0rs of so-called groups or chains, o.nd on
tho other :1and, it iTI'.\Y include so,n0 sus:9cndod. banl~s which were r Jportod
as 'oolonging to chains or groups, though tho rnanage,;1on t ma:r have
opcra.t.Jd them entirely indOJ;lOndcntl3r of tho oth3r banl:s under tho
sa::io control ,
On tho basis of t!1c best infor:Jc tion availa.blo , however, it
appea.rs that~ totcl of 226 banks wiU-1 a.oposits of $102,000, 000, reported as belonging to 50 difforont ch1.ins, suspended. operation s
during tho nino-.~•car period. Of this nuu1'o,Jr, 61 tanks ;vi th de)1osits
'Ihis
of $35,000,0 00 wore rc:;_Jor t0d as ile.vin6 sussequcn tly reopened.
nino-:,,ro3r
t:1e
durint3
suspended
o.9nl:s
co:-nparos with a total of 5,642
In other ,rorcls the chain
period with d.eposi ts of $1,720,00 0,000.
banks that were reportei as h'-lvin 6 SU.S)ended operation s represent ed
about 4 per cent of the total nu.nber of suspensio ns and about 6 lJer
cent of the total de~Jos its of all susi_)ended banks.


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Federal Reserve Bank of St. Louis

St.6526

- 14-15 I
StatP LPws Berrire on Chain or Gro"J.n Jan',ing . Tl e Board s
0
var0
tbe
of
1
Cour.s
t~e
G n ral Counsel , with th assista~ ce of
ious F0 d 0 ral r 0 sPrVP ben~s, re.cPntly preparod en enalysis (X-6392)
of state laws aff 0 ctip.g th" cwn"'rst ip of bank stock ~y holdin~
cor~ora tions . • o attPmot has bEen madP., ho~;,ver , to classify
th<> s tatP.s so as to sbow in which st.:>.tes the gro,,.t. of chain or
group ban'ring is li 1<Ply to b <> rf'tnrd 0 d as H cons~ u"nc~ o: thP.
nrovisio ns of stat<> laws, in fact th") analysis covers 19 stat s
only, th 0 r 0 rc:aining s tet"'S apP<Jren tly not l1e.ving ado1Jted any laws
on this subj "'Ct •
0

0

1'a1)1=-s on C11:.::iin or
sub!T'i tt<!d to sup~l"'m- "'nt
bankillt:!' , in addition to
to v.-:1 · C:--1 r..,lat" to both
ban~-ring :
Table,

5-

C-roun Ban1rin,.,., 1'h9 follov·in g tablPS ar~
t:'1~ a·oovl"' c3iscuss ion on c'1ain or groun
th 0 g"1. ral tablPs ur.-viou slv r 0 f rr"3d
branc½ bar.'ring ar.d to chain 2nd groun

Numbnr end lol"r:S and. inv-"stm< >nts of
ben~s r~port 0 d as O"lo~gin g ~o c~ains
ar:d grou9s, by clasr0s of ben~s end
by stPt8s, D;,c 0 mb 0 r 31 end Jun~ 30,
1929.

b - .'tL"Tlb •r of baak chains Ernd groups distribut"d eccordin g to sizn of S"Stf'ms
and E ccordine to typP of control, b.y
stetcs, D c9mbPr 31, 1~29.
0

0

ouos, shori:1g t:·rn nu..rnb~r
A comol 0 tn list of b•1n:s chains r>nJ
be n"rs, by cl."ss~s or
e-roup
-rd
::
cho.:.n
of
,nts
inv~stm
ond
lo:ms
.:md
bot:1 DAcnrbe r 31 "nd Jun,:, 30, 192?, hos f'lso be.:>n orep·rod . A
couy of this list is p intPd E'S u,rt of th~ strt m..,nt by thn Co~ptroll-"'r of the C 'rr~ncy in P;,rt II f nol'm:.., I of Lr> h"".lri-ng s on
O"fOrl" th,-. Comrr.;tt-i on BE'r:ring
Brr11ch, Ch· in rnd Group brn',i
·tiv~s.
or~sPnt
R
of
~ouzP
tPA
of
~nd Curr-ncy


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Federal Reserve Bank of St. Louis

- 16 -

Summn. ry for united St':ttes nni by 011.snes of B:i:1lcs. At tho end. of 1929
t:10re ;;ero 322 b'1Y1:::s in tho United St-1.tes th:it TTere opor:iting branches.
Tho tot--.1 numb0r of b,:wches o::_:i c r-1.ted by these bi"!.ks :1t foe ond of the
:i'e1.r i;ns 3,547, '.li1d the ~greg--.. te lO.'l.."lS "..nd investments of the b1.::1lcs ::md
tlloir br'1Ilc~1vs n::,s ~25,100,000,000 or over 4o per cent of the tob.l
lo::i.ns n...-rid L1vc.:str,,-:m.ts of 'ill.b:mks in the country. Ad.ding the tot'l.l number of br1.nches, 3,547,to tl1e tot'l.1 number of b1..11ks in operG.tion in the
country, 24,6~-5, gives '1 tot'tl of "tppro;cim'"l.tely 28,200 b't.,."1.king offices
in the Uni tod.. St'"l.t0s. _\bout 0:.10-oighth of ::ill the b-mking offices ,rere,
therefore, brx1cht!s. As sb,ted in ' tho first p"..rt of t:1is momor:mdur:1, 119
of the br::u1ch systems v:i th 1,415 br'1.nches -md. lo'1.lls :md. investmea ts of
,;; 6,300,000,)00 :101·e '.1lso r8::_:,orted -:i.t the end of t~1e ye"tr as bolonging to
b'"ii1J:::: ch.'.lins or groups.
1

There r:ero 166 nation:il b·:i.nl~s tk,t vrcro oper'1.ting 1,027 bnnches -:i.t
the end. of the ye'1.r, 3Ild. t!le lo;J.lls '.llld. inv0stments of tl1ese n'1.tion'1.l b'Ulk
bn,nch s:.rstems o.ggreg'l.ted $9,000,000,000 or more th-m 4o per cent of the
tot'l.l for 'lll n'ltion'.ll b'l.l'L.Cs in the country. St'tte b'.Ullc members oper'1.ting
brwc11es 1,t, the end. of 1929 numbered. 180, their brn...-riches 1,299 1.nd. their
lo'Uls 'Uld investments $9,900,000,000. There ,rere 476 nonmember b'l.l'l.ks (including rrru.tu-..1 s'1.vings rmd pri V'lte b·mks) 1.7i th lo'1.lls 311d investments of
$6,20CJ ,OQ,O,QOO, 0""9ero.ting 1,221 br., .mches '1.t the end of 1929.
Developmo:its Du.ring l_-:::_st six montl1s of 1929. Since the l::tst report
r:.._s submi ttecl on brwch b'1.n!dnt'.; ·1.s of the end of June 1929 there lns been
-:i, not incre'1.so of 107 in the
tot'.11 number of br':l..'1.Chos in oper'"l.tion '1.11d a
net incre1.sc of 4 in tho nu...uber of br'1.llch systems. This net incre':lso in
t:10 number of br'Ulchos is '1.t 'I.bout tho s~e ::innu::tl r.'lte 1.s d.urin 6 t:1e l'lst
tl'lree ye-irs. Somo of tho 1-.,rgo brr..nch b'1.11king st':ltcs, hor,over, oho·,., but
little incre-ise in the numoer of br~1chos in oper'l.tion for the six-month
period., for ex-unple 0'.llifor~1i ,'1., 'Uld. !.fichig'1.ll. The princip8.l incre'l.sCE for
t:10 period ·:;ere in 1Torr York, Ohio, :?ennsylvwio. 'illd. :t:i.ssa.chusetts.
_\.l e1ough there n'ls '3. not incre'lsO of only 4 in the number of br.'.lllch
sys terns during tho l'.ls t h '.llf of 19 29, tho re ,:,ere '1.C tu'.l.lly 36 b ::m1::s oper1. ting br'lllc~:es .:.t tl1e end of 1929 th,tt h'1.d no br'1.:nchcs \7h'ltever in Jlme,
t: is gross :iddi tion to t~ie list of branc h systems being offset p::i.rtly by
tl1e f'l.ct tl1.'.l.t 25 br'l.llch systems wont out of existence through merger rrith
other bw}::s, 6 b'.lnks susp<3ndcd op,n·'1.tions '1.lld 1 b1Ilk o.bolished. its br'l.l1Cl1es.

The net incre'lso of 107 in the tot'.11 numbvr of branches in oper.:1tion in
the six-month period is t~e xesult of the cst'lblishment of S2 de novo
br'lilches 1.nd t:10 conversion of 31 b'1.nks into br:1nches, p'J.rtly offset by
t:C1e discontinuance of 49 br.'..111ches through merger rri th other br'.1llches or
otherrrise 'Uld the closing of 7 bro.nchos following the suspension of the p1,ront b'Ulks. In other ,1ords, t!1oro ':rcre 163 nevr br'1.llc:1es in open.tion 'lt the
encl of 1929 1.s comp'l.red Hi th J'uno of the s1.II10 year, ._.rhile 56 of the bro.nches
tho.t uorc in oper"l.tion six months 01.rlior went out of existence.


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Federal Reserve Bank of St. Louis

:Sr,:mc:!1 E;:;.n1dne; since ?assa ,e of :1cFae1cen Act. At the ti ·,e t.12t the
McFadcien Act was "J£>ssed, on Feori.lc'.ry 25, 1927, there were 779 ba.r.?;:s in foe
United Sta.te s thet ,vere o·)eratint:, 1,923 br,,..,nches in tne 11ef:ld office cities
and 971 branc:t1es located -~uts iC:.e sucl.c cities, or a tot,,l of 2,900 'uranches.
Since that time there h~s been a net increase of 43 in the nurJber of 0ranch
bank systems and a net increase of S47 in tne nur.aber of brenches in operation. Most of the i ncreese ro11rasei1 ts brancnes located in head. office
cities , the number of w:1ich i:l;rG~secl fro.J 1,929 to 2,432, or by 503. The
number of branches located outsido of head of+'ico ci ti:;s increased fror,1
971 to 1,115, or by 144. The annual increase in the number of Jranch3s
has aver~ged over 200, and this rate has been maintaine d in the last six
.non ths.
Al though there were 206 ban1':s opera ting branches at tl13 end of l:;!29
that had no branches wha tevor when the l:fcFadien bill boca;ne a lavr, there
has been a not incro2.se of only 43 in the nurn0or of branch systems since
the passage of that _\.ct. This is due to the fact that 120 brend1 systems
went out of existence t:1ro·.igh merger with other ban..1<s, 15 sus:::,,mdcd o Jerations and 28 abolished their branches. Of the 28 baru::s that lJ.ave abolished
their bri}Ilches since February 25, 1927, 26 had only 1 branch each, and 2
had 2 branches each .
0

It is also found that of t~e 2,900 oranches tnat were in oper~tion
on Fe"uruar" 25, 1927, 224 have since 6 one out of existence -- 194 having
been cii scontinue d or merged with o tl1or 'branches a11d 30 going out of existence following the sus2ensio n of t,,c J?Prcnt bank. Thore was a uross
incr asc of 871 in tho num00r of brancl1cs, of which 511 wore cs tablished
de novo and 360 wore inC:.ep,Jnd cnt ban...s th:1t were purc:w.scd and converted
into branches. Since the ::Ja.ssagJ of the McFadden Act thoro have been a
number of mergors of some rat~1cr largo size branch ban'r systeu1s, thus
bringing to existence even la.r.;er sys tens, the princ i:_)c).l ones bein"' as
follows:
Pacific Southwest Trust & Savin,;s E.:ml'", Los }.n 6 elcs, wi t~1 100 :..ra1.ches
consolida ted with First lTetional :Ban.: and its one branch to form
the Los ~-\ngeles- First :l:!a-cior,21 Trust & s -.vin6 s :Sanl-:
Security Trust & Savir, 0-s :o-,nx:, Los .A!"l:eles, wi t•1 r:;l~ "t,rco..nc11es
consolida ted 1dt:1 Los ~n 5el·:s-?ir st Nction~l :rust ~ Savint?,s
Eanlc and its 95 branches to for.1 the Securi ty-::Tirst iJation~~,l
Bank
~

~

Peoples State ]2n1r, Detroit, :liich., nith G branches
consolida ted ,,,i +h t1,e Wa•rne County & Home Savin.;s Eanl-::
and its 47 branches to r'or,r, ?eo_)les-W ayne Co1.:nt~.r J3a:1k
The number of ·oranchas operated ~y J~ tional bDn:::s and Jy state oa~-::
menbers of the Federal Reserve Sys tom has been l'Il3. terially affec te..d by the
nationali zation of a numb,ir of l;:,rge state b;.T.k tranch systems in CPliforni a,
either directly or by merger v•i ti1 existin6 n.-,tion&l b,.n2·s. T.r:ese include
the Eanlc of Italy of San Francisco , t.ho P.:icific Sou.thv1est Trust •and


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Federal Reserve Bank of St. Louis

-

18

-

Savings Bank of Los J~n 6 el2s, and the Se euri ty Trust & Savings :Bank of
Los ..\.ngole s, which ~1ad a total of 425 branches when the :✓icFad.den bill
became a lavr. Tnorofore , it is found. that p'l.rtl? because of this fact
the number of t r anches of ne tion,-:. 1 bcl!t:s incrcnsed. from 390 on Fcbr,1ary
25 , 1927 to 1,027 E't the ond of 1929, while the nu.acer of brnnchcs of
state '.)J.nk members declined fro:1 1 , 560 on E'ebrue17 25 , 1927 to 1 , 299
at tho ond of la.st ?Cor. T'.ncro hc.s a l so boon a consid0ra'Jle increase
in the nu.riibor of branches of nonm0mbor 'oc...,nks , of w111ch there wore 950
on February 25 , 1927 and 1, 221 at the encl of 1929 .
Following is a sum::iar~r showing t:1e m.J.mber cf bra.nch systems and the
number of branches in operation on Febru..'lr~- 25 , 1927 and Dece;n·ber 31, 1929
b;; classes of bpnks :

Clnss of b2n::

Total - ~11 clcssos of banks
Nationvl b"nks
State b'lnk me,nbers
State bank nonme1nbers
Mu t ual savings bcnks
P rivate banks

Number of b.'.'nKs
012er2.ting b rr·.nches
Dec . 31 ,
Feb . 25,
1927
1929

I

Number of brarches
Dec . 31 ,
1g2g

I

Feb , 25 ,
1927

822

779

3 , 547

2 , 900

166
180
407
65
4

145
189
337
50
8

1 , 027
1,299
1,115
99
7

3 90
1 , 560
s63
76
11

Developments since June 1924 , The first complete statistics gathered
by t he Board on branches of botl1 member and nonmember ban.:.s were for June
1924 , at which tine 71'+ banks were reported as opera.ting a total of 2 , 293
b ranches . There was, the ref ore , an increase of a;r:1roxi1:.::i. tely 600 branches
in the three years :'?receding the lf.cFa.du.en Act, about t,ie sane r ate of
grow t h as has taken place since that act was :i:assed. JTational ban.:s at
the end of J une 1924 were operating 2 1+8 branches , s~ato bank me,nbers
1 , 137 branches and nonmember banks (incluclinb mutual savin,;s and ~Jriva t e
banks) 908 branches . Of the total number of branches in opon.tion in J une
1924 , 785 were located outside the head office ci tics 1;nd 1,508 in the hoad
office cities .
In the five and one-half :,ears ending with December 1329, t:1ere wzs
an increa~e of 330 in the number of branches located ou tside head office
cities and an increase cf 924 in the number of branches located in he0d
office cities , o r a total increase of 1 ,2.54 branches . This coID9arison
is shown in more detail in accompanying tables .


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Federal Reserve Bank of St. Louis

- 19 Princioal Branch Bankine: States ai1d CitiP.s. lhe 3,547 brarichP.s
in o oe ration at t h e end of 1929 w re located jn 30 states, 1,236
being locatP.d in 10 states in rhich statP-V"ido brench ban'ring is
"9P.rmitted by law or implicatioi:, 2,207 in tl,e 12 st&.tes ii: which the
ooeration of branch~s is 09rmitted but restricted as to location, and
54 in 8 statP.s in which the fu.rt:1er cxt nsion of branch bank-ing is
prohib i t ,·,d by law. There are, t~1Prefore, branches in o~eration in
three-fifths of tlH" stat,~s, but t1:1e e-re&t ma.j ori ty of the bre.n ches
are located in a r8latively f~v stat~s, in fa c t tPo-thirds of thP.
total nu.rnber are in 5 statPs - California., Nev: York, t!ichigan, Orio
and P=mnsyl v;:inia. Four other s tat,.,s, hoV'P.VPr, A.lso had more then 100
branches in ou::,ration et th<> "'nd of 1929 -- Mas,:-echus"'tts, J:e,r JP?rS""Y,
Louisic1.n[I c,nd ' 1 aryland.
0

0

What might be t,;:irmAd es 11 loct"l'1 brcnches, i .A., brenchns loc1:t<>d
in th~ srunn city as tbP ner~nt b~nks, er~ largP.ly confi~~d to a f w of
the urincinal cities of the country, in fact 10 cities account for
l,059 or
r cent of the total 2,432 local branches. -:rne nu.mbor
of branch s in oneration in each of these citi s at the nd of 1929
was as follows:
0

68 ~
0

0

1\Tew York
San Francisco
Los AngelP.s
Detroit
Philadelphia

0

0

530
*97
*201
*309
133

Cleveland
Buffalo
Baltimore
Boston
Cincinnati

85
73
65
bo
*50

~xclusi ve of thc•se branc:-ies "F.hCSP. hF-ad offices e.re located in
ct~1er cities.
Size of Branch '.3en1,r- Svstems. At the P.nd of 1929 there wer 18
ban:rn tbc::t v:er o ouerating mere than 30 branches, the two largest being the Bank of Itely Naticnal Trust & Sevings Association, San Francisco, and th.:i Bank of .Ar!'erica r,f Califcrnia, 1 -::s Ang91P.s, bc;th of
which are controlled by the Transam..,rica Cc:ruc ration group. ThrPP. rf
thP. rth,;;r lF:rgF' systPms c.lsc b-"l :-ng tc E: singl;:, gr':\up, viz., the
Pe,-olf's-Wayn<" Ccunty B&n1<, the First Nr-,tisne.l Brink and th"" PPninsuler
State Bc,nk ~f Detrc,it, }.'ich., v-hich had a tr:tfll r-f 153 brrnch•"S c1t
th.:i '~nd · f 1929 Pnd which D.re all part of the First 1'1,1tirnc1l-P rul"'S
W,:ynp c-unty group. In additicn to the 18 brench systAms that rere
'nerating 30 ~r m-- re branches at the end ~.f 1929, tl1er8 rere 41 banks
cnerating 11-30 branches and 41 ·: ther ban1.~s : "9erating 6-10 branches.
~/i,re than half -:-f the branch systems, h,-wever, (445 r.ut .,f 822) had
cnly 1 branch each, 150 had cnly 2 branches, and 124 had 3-5 branches.
0

0

On February 25, 1927, Them tb<:> i 1 cFadden bill became a la'l'T, there
wer~ 12 branch systems with 30 sr m're branches. The fcllc~ing list
sh 0 ws the large branch systems in CDPrati~n b~th en F 0 bruary 25, 1927
and DPCeT"!b,=,r 31, 1929, and th,, dispr. sition made r.f th--:se systAms which
wer-=c in r1Jerati0n when the }fcFaddPn Act was passed but bav<=! since
m"rg"d 11'1ith 0ther syst2.ms:


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Federal Reserve Bank of St. Louis

st.

6526

Location ~nd name of parent bank

Feb.2

Bank of Italy National Tr. & Sav. Assn. San Francisco
*Bank of .A.merica of California
Los .Angeles
II
Security-First National Bank
II
Pacific Southwcs t 'l'rust & Security Bk
11Securi ~, Trust & Savings Bank
II
*California Bank
II
Merchants National Trust & Savinss :Scinlc
II
Citizens fational Trust & Scvings ].3,nk
.A.merican 'i'rust Com)any
So.n Francisco
Peoples-Wayne County B3llk
Detroit
II
Peopies State Bank
II
Wayne County & Homo Savings Benk
II
First N~tional Banlc
II
l'rminsu.1.ar Sta to Ban::
Corn Excha::igc :S,:mk
New York City
II
Bnnk of Ma.'1hattan Trust Co.
II
B-:c.'1k of Uni tcd S tc. tcs
II
Manufncturers Trust Co.
II
N:1tional City ]n.nl:
II
Public N2tion~l B2nlc
II
B-:i.nk of Amcric1?, N.A.
Cleveland Trust Compn.ny
Clcvele.nd
Mo.rinc Trust Company
Buffo.lo

Nur:.1ber of branche'"
1
Dec. 1 1 2l

(a)27s
(b)
(c)
98
49
45
34
( e) 24
92
(f)
46
45
2
29
62
4o
6
14
18
27
7
52
32

237
160
139
( C)
( C)
56
(d)
31
94
9l,.
(f)
(f)

(g)33
"31

67
64
(g) 57
( {!, )4-5
37
33
(g)34
57
33

*All barLl.;:s ~re now members of tho Federal rosorve system except those
m.."..rkod with an asterisk.
(a)This was a state banl~ member on February 25, 1927.
(b)This branch system is the result largely of mergers of smaller branch
systems and the purchase and conversion into branches of a number of
independent banks.
(c)The Security-First lfational Bank is the successor of tlle
First National Bank, the Pacific Southwest Trust and SavinGs Bank and the
Security Trust and SEvinss Ban.~.
(d)Absorbed by the Bank of America of c~lifornin.
( e) This was a nonmember banl-:: on Fobruar,r 25, 1927.
(f)The ?eoples-Wa~,rne County B:lILl.;: resulted frorT. L10 con'1er:,io , of the Peoples
State B2.11l::: end t:,e Weyne Count? c.nd Home Savin 6 s ::,"nk.
(g) Increase in the number of branches duo largely to tho absorption of other
branch systems.

Branches Located in Small Ci tics. In connoc tion with tho branc:1cs located outside the hond oifi cP/numbering 1,115 or neerl;y one-third of a.11
branches in operation at the end of 1929, it is interestin · to find that by
far the greater number of these 11 outside 11 branches are located in smnll tovms
and cities. Of the 1,115 outside brunches, 612 were in fact located in pl?ces
that had less than 2,500 po:pul-=;tion in 1920, including 203 in C.:i.liforni.?.,
in Louisiana, 44 in Mnine, 52 in :fr,rylo.nd, 46 in North Cnrol ina, 34 in South
Carolina, 32 in Tennessee, 28 in Vir6 inio, 21 in ;.~ississip::_,i, and 93 in 15
other states. :Besides these 612 branc:10c located in :?1-,ces of loss th.':11
2,500 popubtion, there were 136 brnnch0s in pl~ .ces tn·, t had n ::_:io::;ml:: tion of

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Federal Reserve Bank of St. Louis

s4

0

I

11
outside 11
There were 281/
branches re:,?ortod ," :S being loc,,,tad in citLJs with a popul.'1.tion of 10,000 or
more, but this figure represcmts lnrgel:r brr.-nches of the st2t0 wide-branch
systems in California whose hoqdqunrters are in Snn Fr~ncisco nnd Los .Angeles
but which have branches in such other b ,rge ci tios as 0nklr:md, Sacr.qI!'lento ,
San Diego, Long :Beach a.11d Pasadena.

•

2;500-5,'000 £:•net 86 in"'rl <'.

•

1

2l
vifa popul ~t ion of

-

5,000-10,0

.

The first tabulation made of branch b 2,nking accordin 6 to size of towns
in which the branches are located was for June 1928, at which time there were
572 branches in pl.sees having a po1)ulation (in 1920) of 2,500 or less. During the ensuing year and a ha.lf, therefore, there has been an increase of 4o
in the number of branches located in such small places.
Method of Establishment of :Branches. More than two-thirds of the
branches that were in operation at the time that the McFadden bill became a
law were so-called de novo branches, i.e., established as branches in the
first instance. Most of the remaining branches had at one time been in operation as inde1)enifon t banks, heving ooon purchased and converted into branches,
but in a number of instances tho method of establishment was not ascertained,
The number of de novo brn.nchos has increased by 383 -- from 1,996 to 2, 379- -since tho passngo of tho McFadden bill, while tho numbor of indopondont banks
purch.1.sed arni converted into branches ( including branches for wh ich the
method of establishment was not rc)orted) hes increased by 264.
De novo branches of national banks numbered 635 at the end of 1929 out
of a total of 1,027 branches; state bank members operated 967 de novo branches
tut of a total of 1,299; and nonmember b2nks ( including mutual savings and
iWi vate banks) 777 out of a total of 1,221. No.tional be.nl{s show a considerable increase, since the passage of the If.cFadden Act, in the num"uer of
branches resulting from the conversion of independent banks, but this is due
largely to the fact that some of the large state bank branch syste,ns nationalized or were consolidated ~ith national banks after the passage of the
LicF adden Ac t.
The following table gives a classific2tion of the number of branches
in operation on February 25, 1927 and December 31, 1929 according to method
of establishment:

.All classes of banks
Feb. 25, 1927
Dec. 31, 1929
Nationa.l banks
Feb. 25, 1927
Dec. 31, 1929
State bank members
Feb. 25, 1927
Dec. 31, 1929
State bank nonmembers
F,)b. 25, 1927
Doc. 31, 1929
Mutual savin 6 s tanks
Fob. 25, 1927
Dec . 31 , 19 29
Pri va to banks
Fob. 25, 1927

Doc. 31, 1929
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Federal Reserve Bank of St. Louis

Independon t /Method of
To ta.l
De novo ba.IL'k: s con- /.establishbranches branches verted into/ ment not
branches I reported

2,900
3,547

1,996
2,379

735
1,017

169
151

390
1,027

279
635

88
368

23
24

1,560
1,299

1,034
967

471
296

55
36

s63
1,115

627
697

174
351

62
67

76
99

53
77

2

21
20

11

3
3

7

2

~

- 22

~

Interstate Ermic~Ll-n1ki!",.g, T.,.erc 3,ro two insta.."lccs of bmks opero.ting brnncl10s in s tat.:,s oth0r thA.11 t:_oso i:1 ·.Lic~1. t:10 pnr0n t b:3:ll~s :ire
si tu1.tcd. Th.o B1.1lk of Co.lifornLl., 1; . A,, S-:u-1 Fro.1.ci sco, a conversion of
t:10 :B.::in~c of C1,1ifor:1io. into '.1 n'ltion::tl b'1.Ilk in 1910 , opor··,tes 1 br.:mch in
Portl1,.'1cl , Ore., 1 L: f.3.'l,ttlc, W.:1sL, .'.llld 1 in T::tcoma, i':1.sh . , 1,ll of which
bcci:rno br3.i1Chus uf ,;i,e, :P...t11l: of C1.liforni1, in 1905. Prior to 1905 they
·:rore brwchcs of t:1u Lc,r.~or -u:d S'.1n Fr.'.1.'1Ci sco B'Ulk , Ltd . , w:1ic~1 was suc cocc.cd. by the B'.mk J:f C'1.J.iforni1.. '.i:ho otl'10r C'lsO is t;,'lt of tl10 .?irst
c..,_:ido:1 lh.tion1.l B'l.i~{: o.nd Trust CorrIJ.),'lllY, 2'To,1 Jersey, ·;1l1ich o:pcr::i.tos :i.
br.::-,nch in Phil'1.dolp_1:i'l. . This br:;mch origin'1lly ewe into existence in
1813 .
Suspension or F'\ilurc of Br'1.nch B'1nk ~s:.omc . On tl':c b1.sis of reports submi ttoci to the Fc.dorql R,.,;s,11·vc Bo·ird on b-u:k f:.ilur0s or suspensions '1."ld on brancl: banking, it 'lp:pe'l.rs th.'.1t during t~10 nino- yeo.r period
1921- 1929 , 'J, tot::i.l of la branch b::i.nl':: systems s-1.spcndod opcr'.1tions . These
brn.."lch systems '.'lore open.ting 9 br.'.1Ilc:1os in hc::i.d office cities ond 71
br3l1chos outside s~.1.ch ci tics . Tl.e total deposits of the 41 bx1ks .'.1Ild
their br0..:1cl:"lOS ;7oro $49 , 000,000 . Five of tho br::mch systems, 4 of rllicl1
,-rore opor.:i.ting 1 brnnch C1,ch nnd 1 oper:1.ting 2 brs:..1.c:1.os, subsoql1.ently reopened. 1 1.tcr o~o of the systems '1.g'J.in closed.
Of tho 41 br.:i..1ch sys toms t'.11, t \'!Oro ro·ported '1S h:wing suspended during
the period 1921- 1929 , 29 h'l.d only one br:u1cl1- e"l.ch, 6 l"a:td bo brwches , 2
h'1.d three br').nc~1es , 2 h.:i.d four br'.U1Chcs , 1 h.'.J.d five brnnchcs ::md one h'.1d
t·.1enty br:::inc:1es . The 1'1.ttor b.:i..."11::: -md its br:incLes 'l.t tho time of suspension
were reported to h3.ve !".'1.d deposits of $2,805,000 .
Follor,ine is 'J. sumr11.,_ry covering the suspension of brwch b'1JJ.1:: systems
during tho nine- yo'U' period.

Ye'U'

number of
bra.n9h b"Ulk
systoms sus·::>ended

..
'.i'oto.1
doposi ts

Humber
C~'lOS in
I:1 he:J.d
office
city

-

of br::l-.'1opcr.- stion
Outside
hu'l.d office city

1921
1922
1923
1924

5
*l
1

4

$10,917,000
1 ,151,000
23,000
1,365, ~,,no

1925
1926
1927
1928
1929

2
11
3
4
10

2,209,000
7,44c,ooo
2 , 351 , 000
2 , 895,000
19,955,000

l
7

41

48 , 319 , 000

9

71

Tot1l

1

-

5
1
1
5
1
33

:;:3r'.)J."lCh svsto1ns rooncncd
1-J"um1Tumbcr
ber Deposits
of
br'Ulcho s

I

!
\

I

$4C,ooo

1

.
2

s14,ooo

7

-

-

11

1

5,882 , 0CO

I 4

p,742,000

7

1

2

2

5

*Tl:.is b :::ink reopened but closod '1~'1.i.1 -u1d is not t:.orefore includi.::d
iTI. th the reopened b::i.nl:s .
St . 6526

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

- 23 -

State Larrs P..eb,t:):_:1.g to_~~:r:1cr. Ba:1kin~. The Boo.rcl. 1 s Counsel,
with t~1.e a s sistance of the counsel to tl':.e various Federal reserve banks,
recently prepared 3D. up-to-date digest (X-6525) of st'-'.te laws relating
to branch ba:.1::.:in.g. The sui.:mary statement that accomJ?anied t his digest,
in w'.1ic}1 the states are classifiud into folir groups, is sho :m below.
It vrill be noted tl1.3,t under the provisions of st.q,to larrs, state-··.:ide
branch ban::ing is pormitted in 3 stat0s; it is permitted rrit~1in limited
areas in 10 st.: i,tes; and in 22 shtes it is proMbited entirely (except
as to bra:1.ches in operation at the time the :prohibitory legislation was
enacted). Seven states have no legisL.1ti0n :::-8g1,rding branch b.'.lilking,
but this includes Kentucky, in w:1icl1 tho establishment of additional
offices or agencies is permitted und.er court decisions, and Michigan
':There the sta ~e banking d.epartment has raisod no objection to the e:rstabli shmen t of brcmchos in ci tics in w:1icl1 the pu.rent banl:s ore located.
There were 23 branc:1.cs in operation in Kontu·clcy at the encl of 1929 and
439 in Micl1i~w.1, as comparod r,ith 13 and lfOl, respectively, ,on Februar~r
25, 1927, r,rhe:1 th<:; McF1ddon bill bcc.:i.mo a law. The District of Colu.rnbia
is not includ..;ci in this summ·u-y, but banks in Washington may establish
brancho s anyvr:1.crc in t:1.e district •
0

.'l.ccording to information whicl1 has come to our attention, four
states -- Montana, Nobraska, Iowa and ·:rest Virginia -- h'.lve enacted
legislation prohibiting tl1e est11:>1ishrnont of branc:rns since the p:1ss .'.l.ge
of tl1c.: ~JcFaddcn .\.ct. The st1te of Geort;ia passed similar lcr;islation
in 1927, but in 1929 t~J.G law \7as again a,nended to permit the estn.blishmen t of brancl1es in head office ci tics, provided such ci tics have a population of not less than 200,000. In 1Jc\7 Jersey the state law rras amondod
in 1927 to perr:,J.t tho establishment of bnmc::.cs under the sarnc conditions
as govorn n1tional b:mks. In Ponnsylvanio., lcgisl:1tion was en8.Ctcd in
1927pcrmitting the osto.blishmcnt of branches rri thin tho corporate li1ni ts
of those ci tics in which national bo.n:!.cs vre":..·e op0r:i.ting branches or. March
1, 1927. In Vermont legislation vns recently enacted p0rmittinG the ost.3,blishmont of 1,gcncios, '.7l1ich for :tll )ractic3,l purposes seem to be the
samo as bro.nchcs.


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

0

st.

6526

.- 24 SU:.:~\RY OF ST\':::E LAWS

St:1tes permitting
stci,te-•,-,ide branch
ba.n_dng

/ St'ltesprohi bi ting
St .1 .tes permitting
br'J.."1Ch ban:ting \7i th- br.J.Uch banldn 6
in limited. ci,reas

_'..rizon:1
Californi:1
:i:lel1w'3.I'e
::,,,ryland
Eorth C'1rolin:1
Rhode I sl3.Ild
South Carolina
Vermont (1)
Virginia

Geor "'ia ( 2)
Louisiana (3)
:.:1.i ne ( 4)
.:1.ssachuse tts ( 5)
:.:ississippi (6)
:~ evr Jersey (7)
reyr York ( 8)
Obio (9)
Pennsylv3.U ia (10)
Tennessee (11)

St1.tes having
no legislation
regarding
branch banking

Kentucky (12)
~:ichigan ( 13)
Uevr Hampshire
Eorth Dakota
Oklaho!Tl.'.),
Sou th Dakota
·;1yoming

Al'lb3JT!a
Ar~::ansas
Colorado
Connecticut
florid.a
Id:ilio
Illinois
Indiana
Iov1a
K3.I1S'.1S

..~innesot:1
l.'.i ssouri
l.:ontana
:rebraska
:Jev-1.da
Nev, .:exico

Oregon
Texas
Utah
ifashington
West Virgini3.
Wisconsin
TOT \.1 • •

9

rCT_\L • • •

10

iOT.\L •

22

TOT.\L

7

(1) :Io provisions regarding branches but State-wide establishme nt of
11 3.gencies" perr.1itted.
(2) City or mu.~icipalit y.
(3) ::unicipalit y or p::trish.
(4) County or adjoining county.
( 5) S.'J.me town.
( br) Sa.me city.
(7) Same city, torm, tormship, borough or village.
(B) City limits.
(9) Same city or city or village contiguous thereto.
(10) Corporate li ,nits of same place.
(11) County.
(12) lTo provisions regarding br3.nches, but court decisions permit establisbment of additional offices or .3gencies to receive deposits
and pay chec.-::s.
(13) "Industri-:u ban!~s" m:w establish br'\Ilches in city or vill ge of
head office; but no provisions covering establi~une nt of branches
by other b.:mking institution s.


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Federal Reserve Bank of St. Louis

st. 6526

St. 6526
TABLE 1 - NU:{BER AnD LOAJ.IJS A::JD INVEST:,Ji:NTS OF ALL B_.\}JKS AND BRA,"\JCHES IN THE UNITED STATES
_\ND OF BRAiJCH AED CHAIN OR GROUP R-\N"KING SYSTEMS, DECEMBER 31, 1929, BY CLASSES OF BA1.lfKS

(Loans and investments in millions of dollars)
Total-all classes
National banks
State b.ank members
of banks
Number of Loans and iTumber of Loans and Number of Loans and
banks ( or investbanks (or investbanks ( or investI
branches)
ments
ments
branches)
ments
I branches)

sUl banks (bead offices) in United States*
Branches
Total -- all banking offices
.

24,645
__ _l!54 7
28,192
1,984

Banks belonging_to chains or groups but
operating no branches

98

901

1,129

1,186

.2,18

4,913

757

2,825

6, 26~-

2.:s that do not belong to chains or
groups but operate branches:
Head offices
Branches

703
2,132

18,839

Inde:9ena.ent unit b ,'Ul.!cs ('b-mks th'lt do
:10t belong to cl1nns or groups 3.rld
do not oper~te branches)

21,839

1,119
l,~9

.

.

-


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

22,527

21,584

119
1,415

-

14,350-4·

58,461

Eanks belonging to chains or groups and
t'J/= rating branches:
}had offices {p3,rent banks)
:Branches

I

16,123
1,221
17,344

7,4o3
1,027
8,430

(a)
(a)

Nonmember banks ( including mutual
savine:s_ and uri vate banks)
Number of
Loans and
banks ( or
investbranches)
men ts

-

·-

45
550

3,083

38
600

2,496

36
265

686

121
477

5,9o6

142
699

7,448

440
956

5,484

6,480

9,770

841

3,505

14,51s

15,171

(a)

( a)

28:J

.

-

-

*Excluding private banks not under State superv1 s1on, For two states the December figures for State ban.ks are not
available, 3,nd in these cases the latest available abstract was used.
(a)Separate figures not available.

T.u3LE

2 _ :·uM.BER OF

St·c1.tc

. _ED

Total
number
of banks
(Head
offices)

ST \.TES

.~.:. ab .'.ll1la

\.ri zona
.\.r "'..r....:,...--1 s as

Californi a
Colorado
Connectic ut
DJlaware
:Ji st. of Col umibia
fl J;-id.a
Gecrgi-i
Idaho
A llinois
~ ndiana

9

0''i;).
J..a.nsas
Kentucky
Louisbn3 .
.:'.).ine
.l"ryl md
: : ':l.~ sachuse t ts

: :i c:-iiJ'l.'l
_..innesot:l.
"''1'.~i ssi ssip;;>i
.l.issouri
Jon t:m'l


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

24,645
350
46
415
437
274
237
47
41
235
405
137
1,765
*981
1,257
1,069

31::PCS .urn 3R.A::JCEES :u.--rn :JUliG:rn. OF BRANCH .urn CHAIN OR ·GROUP :B.lliKL!G ·sYSTE.I.S, BY ST;\.TES, DECEMBER
31,

I

Total
number
of
branches

31241
19
22
3
863

-

13
24

-

39

-

-

-

9

-

Nu.~ber of banks that belong to
chAins or .e:rou-os
OiJerating
Operating \ Number of
no
branches! bra.'lches
brai.1ches
/ operated

rotal
number of
bi:1.'lldng
offices

28 192
369
68
418
1,300
274

1,984
22
6
72
41
16

237
60
65
235
444

8
3

I

137
1,765
990
1,257
1,069

-

l~o
19
'

119

1,41~

-

-

-

8

-

3

41
34
16
87
88

1
-

13

3
2
5

-

572
225
133
230
450

28
106
63
124
161

600
331
196
354
611

32

13

743
1,046
311
1,277
195

439
6
25

1,132
1,052
336
1,277
195

109
306
20
36
45

26
2
1

-

g

-

7

-

-

547

-

-

-

-

703
5
7
2
45

-

20

-

5

13
9
21
53

353
6
2

-

2,132
19
22

3
316

-

7
12

13
24

13

19

-

-

-

-

21 '829
323
33
341
343
253
229
37
29
195
370

3

-

-

4
-

7
4o
19
30
75

15
97
42
124
108

549
175
102
200
330

36

36

572
733
230
1,241
150

10
-

23
-

st.

In o-ocnchmt
unit
banks

96
1,681
961
1,170
981

-

-

-

I

-

-

-

Banks that do not belong to
chains or groups but
operate branches
Number of
Uumber of
br311ches
b311'.:s

.1929

6526

T.IBLE 2 - (Continued)
• -

---

__

~
.

6526

.1.

.
l

Total
( number
of b-mks
(Heo.d
':£fices)

braska
vada
•· J i7 :!G.mpshire
~ew Jersey
~ew Mexico

804
35
123
568
56
1,127

()r·egon
Pen~: syl vania
Rrccle Island
A n,_th Carolina
~ uth Dakota

234
1,566

nnessee
Texas
Ukili
Vermont
Virginia

·;J.shington
1.Vest V1.rgini3.
1
i 'i sc on sin
1:,'yoming


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Total
number
of
branches

Total
nu.irl> e r of
banking
offices

Number of banks that belong to
cl1ains or e:rouns
Operatinb
Operating
Number of
no
branches
branches
branches
operated

Eanks that do not belong to
chains or groups but
operate branches
Number o: : Number of
b'3.Ilks
j
branches

I ,1J.epencien t
unit
bwks

---'--"----

Wew York
:{orth Carolina
North Dakota
Ohio
o::13.homa

4

St.

416

412
1,015

2

-

103
722
77

268

617

33

217
387

484

73
13
47
9

13

27

42

1,849
493
412
1,233

84

18

271

83

114
3

617

85

1,445

10

21

20

11

57

204

1

68

552

1

5

345

9

21

n4

340

297
969

86

14

61

1,308

535

86

1

172

2
2

61

297

1

274

10

957
J32

73

185
35
57

474

250

11

37

21

31

7

10

26

57

377
298

13

7

104

937

39

451
77

52

36

84

123
460
47

18

41

387

729

3

235
68

2

22

1,751

104

060
_,

2

1

1,308

104

806
35
123
671
56

39

61

1

2

2

3

1

4

5

5

32

*Includes June 30, 1929 figures for State banks
**Includes October l.~, 1929 figures for State bwks

197

326

431
1,224
73
96
435
263
297
397
54

Ci.mounts L1 millions of C.oll.,,rs)
- ~]3'-.J.;1ks
~ -that
----~:i3"..n.rn t:1'1t belon:r; to
do not
United St ·J,tes _ _
ch::i.ins or {;:roups
belong to ch1.ins
!ndc,,cndcnt
( includinb
Oper ·:-.tin.g ---r::/Opon,tinc:;
or groups but
unit
/
i b r'.lllchcs )
no b r'U1ches br."11ch es
oper'.'..to br.1,i1cl1e_f_"~ ' - - -banks
----

1- ~11 b'.ln~:s in

St1.te

UNI TED ST i':L':2S

.U-:i.b'.1Ill'1
\.rizon3,
\.rY.:'1IlS'lS
C'11ifornb,
Color.,,do

58,461

4,913

~3 2

32
18

19s
81

50

3,420
262

178

Connecticut
Jel'),W"..re
Di st. of Columbi 'l
Florid1,
Gcorgi'.:1

1,336

37

!d'Jho
Illinois
Ind.i :ma

31
3,802
*897
732

IOW'l

30

167

1

253

134
31

245

334

6,264

13
25

2S, 4~-5
237
155

1,339

553

18 ,839
2

1,350

232

1,299

60

qg

124
135

28

1l.:-o

26

44
2,590
830

37

1,212

19
90

29

22

692

4o4

46

Kentucky
Loui si '.1ll.'.1
r.hine
:li1.rylmd
M'.1SS'.1Ch-.1sotts

554
429
433
837
4,225

37

70

17
21

231

360
165

730

1,043

521
2,311

:,ii chi gm
::inncsot3,
:-ti ssissippi
)lissouri
non t1,n3,

2,021

302

901

402

960

225

151

**222

12

1,199
144

153
Sl

3

359

62

:::::ms'ls

iifcbr1.slc'1

3£5

N ev:1d'.l

2,388

New Yor:r
]'orth C-:trolin'1.
.Horth D:1,ko t'l
Ohio
01:1 -iliom1.

Oregon
Pennsyl v·:i..ni 1.
Rhode I sl:1.11.d
South C'.lrolina
SOU th Di'lco t 3,
Tex1.s

Ut.3.h
Vermont
Virgini-:i,
Vhshington
·11est Virgini '1
Wisconsin
Wyoming


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

81
316

27

8

20

17,222

2 c:'.O

~r

1 , 785

370
2,691

53
32

401

103

2So

82

5,703

663

533
169

11

250
551
460

135

142

58

10,362

151

4,349
219

1,379

1,226

1

177
3,093
147

1,507

233
57

23
104
50

126

1
120

77

22

70

29s

104

90
211

932
112

68

345

917

1,163
38

54

137

162

239

18
236

430

180

311

1So
3

1,036

534
313
63

41

112

252

1,ota

311

~Jc,1 H.-urr::.,shi rc.;
;Jew JGrsoy
]'ow Mexico

Tennessee

91

358

135

27

222

191

360

3

4o

*Includes June 30, 1929 figures for StC1te b:mks.
**Includes October 4, 1929 figures for St1.te b'IDks.

269

345

665

36

T_\:BLE 4 -

]U},ii,ER. _GD 1o_rns

,urn

.urn rnVEsT:A:E:fi'S OF ALL

~-~U3ER B_\i::Ks

St . 6526

rn EACH STATE'

1929
OF M:Bi-.IBER B. JKS THAT OP~Jn.TE BRANCHES OR BELONG r_ro GROUPS OR CIL\.INS , i3Y ST.\.TES, DECE,ffiER 31,

-

-

St 1. te

( Lo'l.Ils :md invost,ncn ts in millions of dol11rs)
Tob.l member b'IDks Member b'l.Il'!.:::s that belong Member b-mks th1t belong Aember b.:mks th3.t do not
belong to ch'1.ins
to ch~ins or groups
to ch~ins or 6 roups
th'lt belong to
\.11
no
and
opcr1tc
or Groups but
but
or
ch~ins
or
groups
mcmbt.;r b'.l.Ilk:s
br'.lnchos
brwchcs
ouerato
o-oor'1.te
brwc11es
no
oocr1 to br-:u1ches
----- Lorins
Lows
Lows
Lo-:ns
:,o '.lJl s
'.1.Ild inNumbt:r
:md
in'.lild
Number
~~umber
-md indumber
!Number '.ll'ld investments
ts
investmen
vestments
vestments
vestr.:ents
·-·

Ui:rrr;n ST.\.TES 8,522 35,934

1,201

22,659

855

3,726

_'__ i ZOn'l.
'-.r _::r:\n s ".\ s
C'1.::'..i forni 1.
Color'l'o

119
17
94
217
123

211
42
125
2,474
218

14
3
17
43
11

31
21
33
2,124
23

13
1
17
26
11

31
6
33
159
23

Co_..r.ecti cut
J<,11."J'U'C
J" ~t. of Col.
:SJ 0rtc..1.
I r i~

67
20
12
61
115

306
30
127
16):
245

4
2
6

4

l~

lQ
HS

4
47
82
120
176

60

54
2,575
4~6
350
203

15
29
5
34
25

26
919
39
69
26

15
12
6
5
57

180
196
IS
loL~
1,310

!
I

_J. "b '.lI:l'.l

-i1
:

J:lo

ois
Ir.di-m'l
:'.:o:·:'1.

Z'l..11S'lS

,.,.,
5'''

234
291
252

.,/

-

'
I

!
I
I
I

!

I
I

-

I

-

19
11

120

1c:;
.,

25

26
919
5
69
26

9
5
5

31
17
15

29
3
34

83

5,579

-

-

-

4

1,018

-

-

-

-

-

29

I
I

-

1

-

22

-

1 ·5
42
55
85

177

323
233
1Lo 5
322
1,691

:~ichig-:m
~innesoto.
~:issi ssippi

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

273
276
38

1,460
535

77

73
134
3

1,236
469
9

-

1
2

( ")
15

105
14

130
21
92
350
195

13

-

-

-

-

-

4

77

947

112
47
82

-

12

-

-

- 12

-

-

1

lf

63
13
6
l~2
97

302
33
45

l~5
515
229
257
227

23
1,656
397
281
177

130
30

14s
87
127
158
3Gl

200
142
35

44

69

I
I

:t(entucky
Loui si 'ID·'.l
::1.inc
:'1.ryl 1.nd.
:'.a,. s1.chusot ts

13,275

-

-

-

7,321

-

-

Wumbor

Lo'i!ls
and investments

13,354

2
6

-

·u''l.il'k:S

263

135

3

II

Ind0:ycnd nt
uiii ·~ t.:CiTl~JOr

-

I
'

I

i

24

71

32
132
2

143
288
3

I

i

I

l
I

10

764

23

62
166
3
164
4 75

21
2

931
181

20

162

3
1

-

-

-

-

87
13

3
6
1

5

1

-

1

49

BO
120

224
66

6S

T,\BLE
'

'

4-

.

(Continued)

>

~

St 3. te

-

Tot:i.l member b-mks Member b'Ull~s that be long Member b'.mks that belong
Member bMks th'lt do not
th'lt belong to
to ch'.lins or groups
to chains or groups
belong to ch'lins
groups or chains
but oper:1te no
.'Uld
or groups but
oner'ltes brwches
--~o_b r'.U!._chc s
onerate br:mches
oner'lte br@ches
( 103.llS
Lo1ns
Lo·ms
Lo·ins
L0'.111S
}Tuffio er / n.nd in:i.'Turnber
3.nd inNumber
and inNumber
3.Ild
1nd inNumoer
:vestments
vestments
veet,.1ents
investments
vestments

-

souri
t'l.."l::J.
~;eor1sk'l.
Yev'l.d"t
:!1..,w E:Unpshire
::e·· Jersey

:Je,, ,:exico

'Je•,1 York
:-ort:.1 C-rolin'l
_, 0rth ~-:i.~;:ot3.

All
mem·oer bmks

187
856
88
113
150
l~O
10
18
57
73
3ru
o.
1,525
30
29
606 11,005
72
174
122
71

14
21
24
3

137
69
.,,.,4
8

-

-

69
5
124
6
44

816
2
9,798
57
44

-

-

14
21
22
3

32
5
55

137
69
46
8

.

-

-

98
2
170

-

44

44

1,958
331
214
3,705
3~

30
55
24
54
7

1,247
97
75
1,700
303

2
55
23
21
1

30
97
74
539
7

Sou th C'lrolin 1
South U3.kot3.
Tennessee
'Iexas
Ut"l.h

55
101
104
639
42

98
69
285
061
86

6
34
15
28
10

45
37
162
92
32

1
34
6
28
10

3
37
6
92
32

-

·;er:nont
··irgini1
·.7:::s. in 0 ton
st Vir 6 ini.'l.
· isconsin
·;;yoming

46
172
146
131
172
28

70
391
317
202
l+80

1
11
32

1
156
171

-

1

-

iJ ' '1

; s:rl V'Uli::J.
de Isl '.l!ld

.

(


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

34

-

24
10

-

219
15

1

-

30

100

10

46
15

-20

-

15

-

388
254
120
948
14

Ch.:.o
C~J -:1hom1

8

-

-

3

4
1

5

-

1
1
-

-

-

-

-

-

-

1,692

2

-

-

109

-

-

-

29

-

8

-

609

54
6

7,936
57

25

1,163

128
142

1
29
5

1
983
154

-

5

-

-

54

-

99
-

-

11
1

1-56
2

-

-

-

135

-

-

42

4

-

-

69

-

57
-

-

-

-

3

-

-

38

-

st.

6526

Inu.c-oe:nd.cn t
uni 1; · fu~mb c.:r
1'1.~:s

lfumber

173
67
136
7
57

Lo:ms
n.nd investr:1ents

--·-----

719
44
136
10
73

295
24
542
66
7B

709
28.
1,207
117
27

358
239
96
894
7

711
234
139
2,005
25

49
67
89
061
32

53
32
123
7~4

45
161
114
131
14s
18

69
235
146
202
261
19

6526

St.

-----

TABLE 5 - CHAIN OR GROUP K\l'lKING AT THE END OF DECEMBER AND JUNE 1929: Summary by states and classes of banks, showing number and
loans and investments of banks belonging to chains or groups.
(Figures of loans and investments for both Deceraber and June are based largely on June 1929 Bankers Directory, and are in
millions of dollars)
:

Stq,te

UNITZD ST\.TES
Alabarra
.\ri zona
A;: kansJ.s
California
Colorado
Connecticut
Jelaware
Djs:. of Columbia
Florid.1
Georgia
,

Total
Dec. IJu,'1.e

I
II

8
3

-

'Na

Kansas
Kentucky
Louisiana
'.~!Oline
:.rn:.:yland
Massachusetts

11

-

4

3

-

-

-

-

2
1

-

-

-

22

19
9

14
3

5

41
84
17
87
83

la
79
10
83
85

11
20
3
33
24

11

4
9
1
1
1

16
10
12

4
10
5

10
6
5

4
6
2

45

33

27

-

1i

-

136

43
20

4o

0


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

lTu..'I!oer of banks
-,J.tio °). .~.::. ! State member Nonmember
D.;~ .-fJ~e Dec. J June Dec. [June

i
12,103 1,821 802 645
22
19 13 10
1
6
1
6
I
72
55 15 10
49
51 29 30
I 16
16 11 11

linois
diana

Fichigan
ilinne so ta
.Ussissippi
Missouri
:t.ontana

---

135
308
21
36
45

-

-

19
2
31
22

-

19

2

-

7

86 23
9 I 25
2
261 132 103
2
2
21
34
9
9 I 5
8 ; 5
321 16

Total
Dec.
I June

111 1,165 1,065 11,177
32
9
9
18
5
5
-2
43
50
55
18 1,528
19
3
30
5
5

-

4
3

-4

21

4

26
55
13
53
63

-

8

1
1
1

-

-

-

3

4
4
7

-

6

11

12
2

82
174
19
22
24

-

5
3

3
-

37
1

-

8,300
7
18
41
1,476
30

-

1

Loans and investments
State Member
National
June
Dec.
Dec.
I June

5,908
31
6
22
952
23
4

-

4,159
7
6
15
848
23

3,397

-

-

-

-

-

11
225

-

-

-

-

134
166

129
157

120
144

94
143

-

26
52

37
1,212
41
90
46

37
996
30
73
44

17
7~
68
24

17
663
4
51
22

190
22
1
1

4
3

124
33
70

8
33
53

78
30
15

8
30
10

4o

-

8

871

:UO

762

281

65 1,262
584
156
15
19
20 I 158
81
21

428
269
15
157
45

366
467
8
26
41

21
194

7

-

-

-

J

-

-

-

8

26
13

2,509

-

29
8

51
62

Eonmember
Dec.
I June

I

21
9

11
226

1,872
1
12
17
350
7
33
1
-

14
9

61
22
1
1

-

14
2
11
293
14
21
20

1,632
1
12
14
4o2
7

-

-

1

35
1

11

271
3
21
20

-

-

7
3
55

3
43

73

225

36

25

708

-

2

-

111
29

-

-

-

348
2

188
115

59
74

111
23

20
12

-

-

8

8

20
9

St. 6526
'j:A3LE 5 - (Conti:med)
Total
Dec.
June

St:1.t0

-

._,br~sk.3.
v~ '.l
,w Hamr>shire
:- 0v1 Jersey
:1ew Mexico

73
13

I

11

: c·.r York
:Torth Cn.rolina
l ort: Dakot:1
Ohio
0}:l orna

-

nnc see
:c.xas
TJt 1h
·,'crl!:on t
'rirGinia
'""'l.shington
..
est Virginia
·-;-i sconsin
..yoming

.
(


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

60
9
102
114,

25 I
5 '

14

3

26
5

81

52

45

18

I

I

-

I

,..,.

~l),

100

I

I

I
I

I

i
I
I

!

I
II

1,

,,I:

June

62

27
23

46

a)

396
3

358
3

97
2

98

2,011

1,571

624

576

58

41+

30
89

51
10

50'
12 I

20
4

17
3

16

32

:o jl

3
1

1

70
1
30

36

103

96

44
31
97

5
10
1

5
10
1

3

3

13
23
1
1
27

12
23
1
1
27

32
803
153
8
47

82
782
153
8
39

71
344
7
3
36

64
34
7
3
2&

3
4

21
56
16

15
55
17

144
10
50
1

92
89
50

105
73

62
62

29

189

79

212
22

205
22

I
I

56

Dec.
I

lS
4

I

Loans and investments
State Member
Hational
June
Dec.
Dec.
June

Nonmember
June

D8C.

I

22
3

I

16

Total

~~c.
I

68

30 I
'
- I
45
I

85

82

36
48
3
2
61

33
48
3
2
54

18
15
1
·1
31

16
15
1
1
·24

32
84
26
1

23
79
27

11

8

25

21
6

6
1

14

- I

2
54

0

l t ron
'? ,-:11~:.:.·l vania

}fooci...: I slruid
- ~~th Carolin~
th 1.:ot:1

r-TumbP-r of banks
lfa.tion.11 State member :i.~onmcmber
Jun0 Dec. June
/June D3c.

I-

I

I
!

-

I

I

I

I

3
4

I

I

I
- II

I

70

36

I

-

3

14
9

16
12

13
14

109

76

190
1

184
1

1,238

861

149

134

14
2
6

14

10
86
4
4
9

2

54

7

3
374
142

3
352
142

2

2

8
86
4
4
9

29

14
3

14
3

44
12
18

30
12
13

154

63

15

1

20

15

131
15

175
15

31

30

0

6

1

I

75
58
32

28

59

-

53
32

I

21

I

22 !

9

19
9

3

1

l+4

1

1

37
22

36

-

34
22

I

r

- CH_\.I:~ OR ~OUI 6 K•
:::'_'GLE
each sb.te, distrib-1ted. co

Total
number
of
groups*

St:ite

u.[I~D ST'i.TES

rne

281

54

.i.l ab 3I1la
.'1Xi zona
\.r:::ansas
California
Colorado

4

1

-

1

-

1
1

5

1
1

3
1

-

1

1
1

Co:.-rnecticut
Jel'l':!are
Dist. of Col.
:?lorida
Geor;i3.

1;rr_

1
3
3

61
2

1
1

-

6
5

-

-

-

2

3
1

3
2

3
12
3
12
19

1
1
1
2

5

4

13

2
l~
2
1
2

3

-

2
2

-

-

I cl:,J.10
Illinois
Indio.n-:t
Io·:a
K-msas

Jer of groups L1
.l.'l' T:-!::-; L~D OF JEC:;:~::n 1c:A irn~ to size .:.ind according.,~ ty:1e of croup.
St. 6525
]u1n0er of groups
:Tumber of groups
controlled b;y Control
IndiHoldin
6
4-0r
Over 20
7-10 ,11-20
3
vidcomB3.ll!':S
banks
banks bo.nl:s banl::s jbanks
panies
unls

Kentuclcy
Louisian:1
::aine
}'.arv·land
:~as sachuse t ts

2
2

5

·achigan
:~inne sota
::i ssi ssi";?pi
·:i ssouri
· ontana

11
37
3
7
2

""febras~;:a
}Tevada
:,1e·,1 Ham-:)Shire
:re,,1 Jersey
:1 err :.~exico

10
1

1

1

1
1

-

-

5

1

l.~

2

1

3
1

-

~: e·, York
:Tor th C3rolina
::orth Dalrnta
Ohio
u~:l ,homa

20

7

8

2

2

-

8

1

Orebon
?e:msylvania
Rhode I slan~
South C3,rolin9,
South D'.3.1..:ota

7
12
1

4

0

-

J

~e:X,'1.S

•

0

··3.shin 6 ton
.:est '!irginia
·::i scon sin
"'yo!Iling

7
1

-

l,

.,.

2

1S

4

:.'e,rnessee
Ut:;i,h
•· .:lr"i"lon t
irgi11i3,

,-

-

1

-

5

-

-

-

1
l~

2
1

-

-

r

1

-

-

8
2

3
2

-

-

2

0

1

)

1

4
4

-

-

-

3
2

-

-

-

-

I

I

I
I

2
3

-

1
1

-

-

-

-

1

-

1

-

1

-

2
9
1
12
19

1

3
1

-

-

2

1

-

2
1

1

1

-

-

3

1

1

3
3

-

8

-

34

1

2

5

-

2

-

-

10
1

1

10

4

1

-

1

12

2

b

-

-

-

-

1
7

-

1
1

-

-

1
1

-

-

1

-

-

l

-

-

5

I

3

1

-

-

I

5

1

1

-

\

-

1
1

1

-

-

1

-

-

1

2

-t,

-

-

-

3

-

1
-

-

-

-

-

-

-

1
3
2
3

-

-

-

-

1

-

-

-

t:.

2

-

1

-

-

-

190

-

-

-

1

1,r

-r

r

-

2
2
3

5

12

- t,

3

2

-,

2

1
9
2
3
1

-

15

-

4

6

10

-

3

-

-

-

1

20

-

-

-

1

-

-

1
1

44

~)

-

1

1
3
1

1

-

-

-

q

26

7

1

-

-

-

7
1

3
1
1

-

-

,.

6

2
l.~

-

-

5

1

14
3

-

5

-

5
5

*Represents number of t:roups •:rl1ose headquarters are located in the
st'1.te, and not the number oper,:,.,tin 6 in the sb.te, s some of the
groups oper~te in several st-:ttes.
r,
._,


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

7 -

TXi31

rsu· ~.! ~B.Y

OE' B~

H-

9•

;IU:TG 1:ri THE UNI'.i'ED ST_\.'.fE·

- 1929.

st.

31 JUJ."1e 30
1929
1929

June 30 Feb. 2:~
1927 1928

24,6l~5
822

25,950
835

1Dec.

I
NU: :BIB OF :O_\iffS
Tot'.11 • • • •
Oper3.tiu b branche s

By cl~sses of b.'.lllks:

25,115

818

By loc~tion of branche s:
517
Only in he~d office city
II
257
Onl~r outside ti II
Bot~ in md outside he1d office city 48

779
189
387
50
8

4
518

108
191
387
28

( 3.)

391
283

526
262

252
l~g

I

S526
June 30
1924

*26,973

145

164
190
398
62

:rat i on:i.l b '.l.!11,;:s
St1.te banL members
St-;i.te bank nonmemb ers .
::u.tu::i.l savings b::i.nks
?riv3.te bmks .

I

4o

47

By pop:.1.l'l.tion (in 1920) of cities

in ·:r: ic11 p'.lrent b3nl::s are loc1.ted :
100, 00'.) or more
50,000 to 100,000
25,JOO to 50 , 000
Less tb.an 25,000 .
0

By size of branch systems:
• . •
1 brc1.nch . .
.
.
2 bro.nche s
3-5 branche s .
o-10 branche s
11-30 br.:mche s
Over 30 br3.Ilche s

351
81
75
315

359
g4
70
305

372
81
66
316

353
65
61
300

41:-8

443

4l~6

150
124
41

153
130
37
38
17

469
150
126
35
41
14

127
124
35
35
12

3,230
2,214
1,016

2,900
1,929
971

la

18

:,U:'BER OF Kt. C}[C;S

To t~l . . . . • • • . • • • • •
...•
In head office city
.
Outside he1.d office city • • •

3,547
2,432
1,115

3,440

Loc1.tio n of "outside II br'.l.Ilche s In pl:1ces \7i th popul'),t ion of
Less th3:1 2 , 500
2,500 - 5,000
5,000 - 10,000
10,000 or ovor

612
136
86
281

591
133

2,362
1,078

572
123
79
237

34

270

By classes of bi1~:s:
lhtiona l b:mks . .
St·1.te b~;: members ...
St1te ban~: nonmemb ers
::utu:11 s·wings b,n1l:s
•
Pri V3. te ba.nl~s
;:ethod of est:1.blis h:nent:
. . •
De :i:-ovo (as branche s)
Indepen dent b::ufr::s purc1'1.s ed
wd converte d into br'.l11ches
1Jot rc.l.)ortc d . . . . . . . • •


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

10

1,996

<J73
30

99
7
2,379

2,329

2,214

1,017
151

958

553

163

153

*'. 1C1.rch 19 27.
(a):Tot sep'.lrat ely b.bulato d.; included vri th

11

(not
:i.v".ib.b le)

390
1,560
863
76
11

941
1, ~~2()

1,027
1,299
1,115

2,293
l,J08
7G5

2~.g

1,137
903

(a)
( ;\.)

735

169

st:i.te b'l.,ik nonmemb ers.

11

••

TXBLtJ 8 - NUMBER OF R,?1:3 O?F,R '.Trm R.°'-tANCnES :urn Nm:IBER OF BR.i\:JCH.ES

rn

O?ERAl'IOi-T, Jffi,JZ

1924 - me. 1929,

Humber of ban~:s oueratin1 branches
Dec.
Feb.
June
June

BY ST.\.TES

St. 6l52 6
Number of branches
Feb.
Dec.
June
June

31
1929

30
1929

25
1927

822
166
180
407
65
4

818
164
190
398
62
4

779

Total
.\.rizona
California
Delaware
Dist. of Columbia
~.hryland
Uorth Carolina
Rhode IslMd
South Carolina
Vermont
Virgi:-iia

216

State wide branch banking permitted
215
226
237
l, 286 1,265

Total
Georgia
Kentuclcy
Louisiana
.Maine
Massachusetts
l.iichigai.,
M.i ssi ssi lJJ?i
Mew Jersey
new York
Ohio
Pennsylvania
Tennessee

lI:JITED STATES
Total
N<J.tional
State member
State nonmember
~,futual sf.lvin6 s
Private

30
1924
108
19l.
387
28

72

6
99

10
35
40
11
8

11
27
4o
9
9

39

33

37

31

581
16
10
42
24

578
16
9
42
24
86
61
11
53
106
58
81
31

7

12
30
39
11

11
7

8

5

30
1929

1,027
1,299
1,115
99

3,440
993
1,298
1,046
96

7

*

7
54
7
11
33
42
11
12

7

53

31
1929

5

25
1927

30
1924

2,900 2,293
248
390
1,560 1~137
863
903
76
*

7

11

22

22

863
13
24
124
77
35
57
10
61

861
12
23
125
77
35
50

1,120
23
762
14
20
113
74
29
25

60

So

Jjc

835
20
533
18
19
88

66
21
20

Branches restricted as to location

88

62
11

55
106
55
80
32

526
21
5
41
24
79
63
11
14
106
53
82
22

447
21
4
3l~
23
61
63
11
14
77
51
67
21

2,207 2,121
39
34
28
26
106
108
63
61
161
154
439
433
25
25
103
103
722
682
268
259
185
169
68
67

1,726 1,397
53
39
12
13
106
54
133
98
l.~01
332
25
25
21
21
362
517
231
203
131
93
55
53

l~

Br~nch banking prohibited by law**
Total
.U ab '3.IIla

Arkansas
Florida
Indiana
:unnesota
Nebraslr.a.
Oregon
il/3.shington
Wisconsin

25
5
2

25
5

27
5

30
5

2

2

2

54
19
3

54
19
3

1

3

61
19
3

s

1
B

19

4

4

4

4

2
2

2
2

2
2

3

-9
6

2

2

2

2

2

1

1

1

1

1

1

1

1

3
6

3
6

4

5

5
9

5

6

7

9

9

9

No branches in operation:

7

7

6

Colorado, Connecticut, Idaho, Illinois, Iowa, K311sas,
Missouri, Hontana, Nevada, Hew Mexico, Tex:1s, Utah
·nest Virginia

R9__:p_rovision in State law regarding branch banking.
Ho branches in operation: Ne,1 Hampshire, North Dakota, OJ.r..la.homa, South Dakota,
·.'Jyoming.
>tCJot sep::i.rately tabul3.ted,
*'4<:Bro.nches reported were established prior to prohibitory legislation.

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Federal Reserve Bank of St. Louis

11

TAi3LE,. 9

-

~\.T~.S OPER,\TEi·

States

822

Total
~\.rizona
California
Delaware
Dist. of Col.
Har;yla.nd
Horth Carolina
i.1..'1.ode Island
South Carolina
Vermont
Virginia

216

166

TIC B1tD'.::I-IES ON DECF~,IBER

.1.-

BY STATES
St . 6526
N1.1mber of br.sncbes
Number of b:mks o·per3,tin 6
Operated bv
l".~~tion
branches
Outlstate
In
side
head
HonTotal NaState NonTotal
Na- bank
tional rnem- member office H. o.
tional mem- members
city City
bers banks
bers
banks

lt.lJITED STATES

O-

180

476

3,547 1,027 1,299 1,221

2,432 1,115

State wide branch banking permitted

7

53
7

37

23
2

12

5
2

12
30
39
11

6
3
3

11

7
39

8

3

5
36

~

2

25

2

3
4

3

2

33
5r
0

7
28

1,286
22
853
13
24
124
77
35
57
10
61

526
480
12
8
4

189
12
105
2

8

24
7
26
2

12

11

2

571
10
278
11
12
92
66
7
47
10
38

475

811

318

22
545
10

3

24
68
11
16

56
66
19
49
10
34

g

27

Branches restricted as to loc ·1 .tion
Total
Georgia
Kentucky
Louisiana
;fa,ine
?fa.ssachusetts
J,;ichigan
Mississippi
New Jersey
lfow York
Ohio
Pem1 syl vani a
Tennessee

581
16
10
42
24
88
62
11
55
106
55
80
32

121
l.(

4
1

151
3
2
6
1

17
11
1
115

32
8

16
9

16
30
19
37
20
17

309
9
4
35
23
55
21
10
18
37
27
47
23

2,207
39
28
106
63
161
439
25
103
722
268

185
68

48~21
10
8

l, 099

624
144
63
60
71
58
24
31
70
82
104
43

1,930
16
25

277

l.(9

57
57
19

63
72
1
33
189
19
43
25

27
309

27

1

26
18
3

27
19
3

5

2

8

1

4
14
35

3

39
463
167
38

6
142
436
1

93
721
235
176
30

23
3

3

24
10
1

33
9

38

Bran_ch bankii:i_g ·prohibited by law*
Total
Alaba.'1la
.\.r:,;:ansas
Indiana
'.:i n~1e sota
~Tebraska
Oregon
·ilasl1ington
7li sconsin

25
5

8

11

1

4

19

1

2
2

3
9
6

6

2

2

1

1

5
9

2

2

1

2

4

3

3

2

8

1

2

4

1

2
2

2
2

1

1
1

1

1

1

3

2

3
6

No br&,ches in operation:

2

11

6
2

1

Colorado, Connecticut, FloriJ.a., Idal10, I lJ. inois, Iovra
Kansas, l[issouri, Montana, Nevada, New :,:; exico, Texas,
Uta...11., West Yirginia

~rovi sion in ·State
.::To branches in operation :

17

6

19.W

regarding branch banking

New Hampshire, liorth Dakota, Oklahoma, South Dakota ,
Wyoming

>t<J3ranches reported were established prior to :prohibitory legislation .

lTOTE:

Of the 2,432 branches located in head-office cities, 637 were operated by
national banks , 1,163 by state bank members, and 582 by nonmember banks.
Of the 1,115 branches located outside head-office cities, 34o were operated
by national banks, 136 by state bank members, and 639 by nonmember banks .


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Federal Reserve Bank of St. Louis

March 3, 1930
Meeting of Committee to study branch and chain banking
MR. GOLDE:N-ViEISER:
MR. ROUNDS:

How do you view the function of this Committee, Mr. Rounds?

I assume what the Board has in mind as an objective is to develop

such facts as will be useful in an effort to reach a decision as to what type
of banking is most likely to prove to be to the public interest.

Now, as to

how that can be done, th9re are only comparatively few states in this country
that per~it state-wide branch banking, and only one or two in which it has
been developed on a large scale.

I do not suppose we will get a satisfactory

picture of branch banking as it has existed in this country.

e have seen a

good deal during the last two or three years in the development of so-called
group or chain banking.

I do not think that has been in the nature of an ob-

jective along that line - everybody that has gone into group or chain banking

•

has gone into it as a step in preparation of branch banking, i.e., with the
idea of beating the other fellow to it.

Banks could be merged and thus start

out with a well developed branch system - if and when laws permit it.

There

may be exceptions to that, but it seems to have been the main motive.
Another motive of importance has been the disposition to manipulate bank
stocks and to make money through consolidations, without thought, ~erhaps, of
the banking question as such at all.
For a study of this question, I think we would need to review pretty completely the history of branch banking in Canada and in England and perhaps in
one or two other countries.

I think we would need to find out what the systems

had been; how they function; where they had fallen down - because generally
speaking, I think you will find that a great economic change is brought about
by the necessity for change - it doesn't just happen.

•

Then, I think we would

need to make a study of how the present system was functioning, with particular reference to the supply of credit made available to the maller communities


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Federal Reserve Bank of St. Louis

-

P

e 2

where branch banks were located; wnether those branche s seemed to be uerform in~ as useful and essentia l a service to their con:mun ities as would be ful'nished by individu al unit banks.

I think we will need to aive conside ration

to the develop~ ent of organiz ation, i,e., difficu lties of est bli hin
sonnel organiz ation compete nt to deal with branch banking on

a per-

big scale.

I

think we will need to deal with the difficu lties of supervis ion, compete nt
supervis ion of brancn b~~kin
thing.

- difficu lties of examina tion and that sort of

I think we would also need to compare the difficu lties of unit banks

in the small commun ities - they are limited in what they can do.
there are weaknes ses in management.

I think that

Small banks do not always have, in fact,

frequen tly do not have compete nt management.
I suppose thore is a lot more that we can do - but in a general w~ it

•

eems to be

bout the way to begin - in the hope that we can present facts in

such a way as to enable somebody to draw conclusi ons as to what is most desirable.

Our job is to paint a picture of the pros and cons - all of the elements

in favor and against .
Sar.11e thing for branch banking .
chain and group bankin~ .

I have a feeling that should be gone into with com-

parison with branch banking .
group bankin

Tiiere has been a good deal said about

Almost sure to reach conclusi on that as between

or chain banking and branch banking , branch ban.kin

is prefera ble.

I do not state it as a conclus ion, but it seems that way.
It is largely a problem for research ; a study of bankin
banks have written on the subject, and we can learn from them.

history .

any

More recent

developm ents in this country can be obtained through first-ha nd inform tion •

•

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Federal Reserve Bank of St. Louis

•

P
GOLD

ISER:

• CLERK:

Ho

do you view it,

r. Clerk?

I think, ho ever, that 1n stati

void making inferences that indicate conclu ions • . It seem
h ve made a f ct-finding
of the

tudy

to what has 1 d to th t course.

pplies to the development in the United States.
can o-o for

om

to

e after we

And th re we should
I think the same thinH

I think th t i

considerable time to come.

The next

bout as far

tep would be, if

e

asked to go that far, to reach some conclusion as to what would appear to

be a normal development in thi
•

one cannot

orld, w will find the inevitable development th movement in

present information

ar

fact

d report on banking in th principal coun-

most countries away from independent to branch banking.

e

3

As I see the duty that has been delegated to us by the Board, it

is a f ct-finding duty.

trie

e

MR. ROUNDS:

0

:ountry.

ouldn't you think your fact-finding would go as far

to develop whether in

ctual operation th branch bank

to

ttempt

eem to be

rforming

proper function, r nderino- satisfactory service, giving as good 8ll

ccount of

themselves to the public at lar e as unit ban~a7
MR. CLERK:

We have nob sis for comparing relative advantages Md disadv8ll-

tages of unit and br8llch banking any place in the
here developed to an

orld, bee use they have no-

ual degree of effectivene s so a

to be ble to comp re

qualities of the re pective kind of bankin •
. GOLDENWEISER:
~ffi.

.

GOLDENWEISER:

LEMING:

from it if

•

Thi
e c

Co prehensive f ct-finding i

Have you anything to say, Mr. Fleming?
i

f ct-findi "' oommittee.

of the territory.

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Federal Reserve Bank of St. Louis

A gre t de 1 of goo

et the right tr 11 to work on, and I don't thi

be any particular advantage in attemptinu to
recolJl!Ilendations.

our duty.

will c o,n
there can

et up any definite idea as to

I think r. Rounds and Mr. Clerk h ve covered practically 11
I don't see that I can add anything to it at

11.

.

.
Page 4
Have you anything to say, Mr. Smead?

MR. GOLDE?

ISER:

MR. SMEAD:

Briefly, yes.

I agree with what Mr. Rounds and Mr. Clerk have

said, and feel that we are after facts.

We must find out the early history

of banking in all principal countries of the world.

The development of branch

banking in those countries up to the present time - and the
as it no

yste~ of banking

exits, and it seems to me that through a procedure of that kind we

ill get as much light on toe question as any other way.
draw on in this country.

our country.

We haven't much to

Canada is a country that is radically different from

A large portion of Canada is more or lees barren territory - no

large industries - very sparsely settled, and while branch bankin~ might be

.

entirely satisfactor y to Canada - this wouldn I t mean that it l90uld be sat is-

•

factory in this country.

There are other countries where conditions and

problems are more si=nilar to our own than in Canada, and these will be the
countries to study.
So far as group and chain banking are concerned, I would like to know
whether that type of development has been developed anyw~re in the world, I

don•t kno

whether it has or not - haven't the slightest idea whether ~ny

other country has had experience on that line.

I assume they haven't had ex-

perience with finance or holding companies - buying banks, making profits. If
that 1s true, we can bring it out.
MR, ROUNDS:

I cgre~ ith everything that has been said by everybody.

I also

agree thoroughly with the thought that we should not be possessed with the
idea of recommending a solution to the problem.

I rather expect that as a

natural consequence of the study, if it is done with sufficient thoroughnes s,
•

the desirable course would be obvious, because we probably would get at the


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Federal Reserve Bank of St. Louis

.,.

•

.

of thi

P e 5

develop ent, b

ed on experience in oth r countrie .

erely stating that the facts, if they are the right on s, I would expect might
olution, but I think

point to the

rt of our job, as I understand it, to

don't think it 1
mend tion .

I

with the :Soard,

their own ae to

e hould content our elve

ume

a

hen th

tizn

comes the committee

it might be that thy would

ish to

•


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Federal Reserve Bank of St. Louis

•

I

t to maker com-

r rou h dr ft
de ire of

h ther the final report should include definite conclu

not .

•

tt

with that.

ons or

•

t


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Federal Reserve Bank of St. Louis


https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

f


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Federal Reserve Bank of St. Louis

inc


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Federal Reserve Bank of St. Louis

'


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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis


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Federal Reserve Bank of St. Louis

10, 1930

or To

c•o

IH FILES SECTIO

AY 2719 O

lde

11

I

r

d

tion

t

t

a

r

c

f

11

•

r

ch

·FIR ST J.:
CAPITAL

j

..I..

11,000.000°.9

WALTJ-R W . SMITH ,
P R ESI D E N T

·-

IN

Iw I

TION...t~:r~ BAN K
.,,oNAJ. B"'1i

~

~

SURPLUS ~5,000,0000. 9

ST.Lo u1 s ,~Io.
! rch 17, 1950 .

Mr. J . C. Noell, Asst . Seer t~ry,
F Jeral Reserve Bo rd,
\ shin on - D. c.

_ ___ /

!~

I

Please ccept my than:cs for your
o o~ A oo,
~ a n d copy of the hearing s befor ~ the Cammi ttee on Banking
and Currenc y of the House on H. R. 141, 11 Branch, Chain & Group
Banking " .


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Federal Reserve Bank of St. Louis

,ith kind reg rds , : rnmaJ.n ,

Very truly J

S. P.

4 /

e
"

LEGR AM

FEDER AL RESER VE SYSTE M

'

(LEASED WIRE SERVICE)

200 b

RECEIVED AT WASHING TON, D. C.

Golden weiser
l

'asbing ton

Has secreta ry-ship branch bankin g commit te~ been settled


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Federal Reserve Bank of St. Louis

Clerk
144p


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Federal Reserve Bank of St. Louis

7, 1930

CIC